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NSIAD-85-24 1 (1984-11-09)

handle is hein.gao/gaobabnnr0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 NATIONAL SECURITY AND INTERNATIONAL AFFAIRS DIVISION NOV 0 9 1984 125618 The Honorable Robert Watkins Deputy Assistant Secretary of Commerce for Automotive Affairs and Consumer Goods Dear Mr. Watkins: Subject: European Use of Import Restrictions To Protect Domestic Auto Industries (GAO/NSIAD-85-24) There is continuing interest in legislative and other proposals to protect the U.S. auto industry from foreign compe- tition, particularly from Japan.I Such proposals include ex- tending Japan's voluntary restraints on its auto exports to the United States and imposing domestic content requirements. The latter would require firms selling autos in the United States to manufacture domestically a certain proportion of these vehicles, measured by value. 1The 98th Congress considered a number of legislative proposals to assist the U.S. auto industry. --H.R. 1234 (introduced Nov. 7, 1983), among other things, would establish domestic content requirements for motor vehicles sold or distributed in the United States. --H.R. 4499 (introduced Nov. 18, 1983) would limit the quantity of imported motor vehicles sold in the United States to no more than 15 percent of the market. --H.R. 3113 (introduced May 24, 1983), among other things, would instruct the International Trade Commission to determine whether imported automotive products are or threaten to be a substantial cause of serious injury to the U.S. auto industry and, if so, recommend remedial action. o3(5- 7 8 (483380)

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