'Clunkers' author demands Obama file trade complaint against Japan

The lawmaker behind the "Cash for Clunkers" program urged the Obama administration to file a trade complaint against Japan for its version of the program.

Rep. Betty Sutton (D-Ohio), the author of the legislation in the House authorizing the program, introduced a resolution on Wednesday calling on President Barack Obama's trade representative to open a case against Japan at the World Trade Organization (WTO) for its own 'Clunker'-like program.

At issue, Sutton said, was the Japanese program's refusal to subsidize trade-ins for American-built vehicles, only cards made in Japan. The U.S. program had fewer restrictions on how consumers could use subsidies to purchase new, fuel-efficient cars.

"The fact that the Japanese program excludes U.S. companies from competing is discriminatory and fundamentally unfair," Sutton said in a statement. "We cannot sit idly by while we play by the rules and allow the Japanese cash for clunkers program to continue to discriminate against our American manufacturers and workers."

"That's why I introduced a resolution yesterday that calls for the U.S. Trade Representative to immediately initiate discussions with the Government of Japan to identify and remedy violations of Japan's trade obligations under the World Trade Organization," Sutton added.

It's not clear whether U.S. Trade Representative Ron Kirk would actually initiate a WTO claim against Japan, since Sutton's resolution is non-binding.

If a case were initiated, though, and decided in favor of the U.S., it would allow for domestic retaliatory tariffs against Japanese automobiles.

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