---

Assessment of 1995 Auto Pact Difficult

2 July 1998

Assessment of 1995 Auto Pact Difficult, But `Japan Has Not Done Enough'

    WASHINGTON, July 2 -- While Japan's shrinking economy makes
it difficult to assess the impact of the 1995 U.S.-Japan Auto Trade Agreement,
the head of the American Automobile Manufacturers Association (AAMA) says
"Japan has not done enough" to implement it.
    AAMA President & CEO Andrew H. Card, Jr. writes in the latest "Global
Automotive Trade Report" that "... promises of deregulation mostly have gone
unfulfilled, and the government has done little to encourage more openness in
the country's dealership system."
    According to Card, "AAMA and its member companies support efforts of U.S.
officials to assist Japan's government in dealing with the fundamental
weaknesses of its economic system.  Meanwhile, the U.S. should continue to
expect Japan to do all it can to improve the climate for imported autos, as
the Agreement requires.  However, we believe it is difficult to accurately
assess the impact of Japanese actions under the Agreement until the
fundamentals of Japan's economy improve."
    July's "Global Automotive Trade Report" also features an update on
negotiations to resolve the auto trade dispute between the U.S. and Korea;
reports on the signing of an international agreement automakers hope will lead
to harmonized vehicle regulatory standards; puts Russia in the "Country
Focus"; and includes quotes of note in "What Others Are Saying."
    To obtain a copy of the "Global Automotive Trade Report," contact Oscar
Garcia at 202-326-5534.
    AAMA is the trade association whose members are Chrysler Corporation
, Ford Motor Company and General Motors Corporation
.  Visit AAMA's site on the World Wide Web at http://www.aama.com.