The United States is a staunch proponent of free trade in the world. Consistently we have led the international fight against barriers to the free flow of goods among nations. But the system breaks down between two trading partners when rules aren’t applied equally – when one partner expects free access to the other’s imarket but doesn’t lreciprocate to the same t degree. ” Such has contributed to the problem faced by the American auto industry, particularly in relationship to trade with Japan, indicates Sen. Gaylord A. Nelson, D-Wis. Causes of the industry’s problems are many, of course, including shift in ‘consumer demand from large cars to smaller, more fuel – efficient ones. Obviously the industry should have heeded the signals of this shift years earlier. Encroachment of auto imports on the traditional gAmerican market is indicated by figures presented hy Nelson to the Senate recently; From an average U. S. market share of 15.1 percent in 197076, foreign cars ,increased to 17.8 percent of jthe market in 1977, and ac.c-ounted for 21 percent of all .. r car sales in the U. S. in 1979. In the first ,quarter this year, the im,ports’ share of our market soared toa shocking 27 perxcent. , Of particular concern are auto imports from Japan, which in 1979 accounted for more than 76 percent of all import sales. according to Nelson. “Since 1974. Japan’s auto ‘ exports to the U. S. have nearly tripled, from 791,000 vehicles a year to more than 2,250,000. In 1978. Japanese cars alone accounted for 12 percent of all U. S. car sales. That figure shot up to 16.6 percent in 1979.” The United States stands virtually alone among the world’s major auto producing countries in the ease of access it allows foreign – and particularly Japanese – auto imports, Nelson says. “Our major trading partners all have tough restrictions on the number of Japanese cars and trucks they import each year. In contrast to our low 2.9 ad valorem tariff on foreign car imports which is scheduled to drop to 2.5 percent in 1987 France, Great Britain. and Italy all impose stiff 14 percent duties on Japanese car imports. together with absolute quotas.” Germany also imposes a , 14 percent tariff. A number of other countries combine high tariffs with tough local content requirements. While we maintain an open market to Japan, that country has thrown up nontariff barriers to cut down on the number of American vehicles we can sell there, Nelson asserts. “These barriers include discriminatory commodity taxes and inspection systems. and restrictions on marketing networks which unfairly burden the sales of American – made vehicles in Japan.” The non-tariff barriers can “almost double the price of American cars sold in Japan, and have contributed to an alrming U. S. – Japan trade deficit in autos of $9 billion in i979.” the senator says. The auto industry plays a critical economic role in the United States. It provides 1,750,000 jobs one of every 12 manufacturing positions in the country – and supports hundreds of thousands of other jobs in related industries such as steel, rubber. and glass. In the present crisis. about 250,000 auto workers have been laid off, and hundreds of thousands more have been idled in parts and supplier industries. Although committed to free trade, the U. S. obviously must look to the economic health of its key industries. At least as an emergency step. these suggestions by Sen. Nelson ap pear to have much merit; – The administration should ‘insist Japan do away with discriminatory non-tariff trade barriers against American cars. – Action should be taken on recently – introduced legislation to equalize the conditions under which Japan and the U. S. sell cars and trucks to each other’s markets. – The administration should insist that Japan temporarily limit car exports to the U. S. to 1977 or 1978 levels for 18 to 24 months. Free trade in its true meaning depends on fairness and equality. Initiatives to encourage these conditions in internation relationships seems a positive route to take.