Japan and U.S. Agree to Create Consultative Group on Automotive Industry Issues, According to Japan's Ministry of Economy, Trade and Industry

    NEW YORK--Oct. 18, 2001--The Governments of Japan and the United States have agreed to create a new, stand-alone "Japan-U.S. Automotive Consultative Group (ACG)."
    In light of the two Government's shared recognition of the automotive industry's vital importance to both countries as well as to the world economy, the ACG was created to foster a constructive Japan-U.S. dialogue on a broad range of matters related to this sector. Although the ACG lies outside the "Economic Partnership for Growth (EPG)," which the leaders of the two countries agreed to establish in June, the ACG is based on the same principles and spirit as the broader Partnership.
    It is widely recognized that the trend of globalization during the past years has profoundly changed the environment surrounding the auto and auto parts industries. Through cross-border M&As and business alliances, the auto industry is undergoing a global restructuring. In fact, seven out of the eleven Japanese auto manufacturers are now affiliated with foreign manufacturers. Moreover, due to the revolution in information technology (IT), a borderless and highly efficient parts procurement system has emerged and spread throughout the industry. The ACG will serve as a forum for the two Governments to address policy issues that arise as a result of these systemic changes. Meanwhile, the two Governments are committed to continue to address such issues as open markets and regulatory reform, as they arise, in line with the objectives of the Partnership. In this context, the ACG will also be a forum for discussing trade-related issues or concerns raised by either side.
    The ACG meetings will basically be held annually and will be co-chaired at the Director level by the Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure, and Transport (MLIT) on the Japanese side and the U.S. Trade Representative and the U.S. Department of Commerce on the U.S. side. It will include officials from other agencies as appropriate. Data provided by the two Governments will also be reviewed at these meetings.
    The new framework is essentially based on the same concept as the "new dialogue" proposal that the Government of Japan advanced at the end of last year upon the expiration of the "Measures" adopted by the two Governments in 1995. Through the ACG, the Government of Japan is eager to engage in a constructive dialogue with the U.S. Government that will serve to promote the further development of the automotive industry in Japan and the world at large.