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Japan's Path of `Export Now, Reform Later' Examined

25 August 1998

Global Automotive Trade Report Examines Japan's Path of `Export Now, Reform Later'

    WASHINGTON, Aug. 25 -- As the impact of the Asian financial
crisis spreads around the globe, the world's economic leaders have called on
Japan to strengthen its domestic demand and deregulate its economy.  Despite
their pleas, Japan's new government has hesitated in taking significant and
meaningful steps to reinvigorate the country's economy.  Japan has been
active, however, in redirecting its excess auto production to export markets
overseas, according to the American Automobile Manufacturers Association
(AAMA).
    AAMA focuses on Japan's path of "Export Now, Reform Later," in its August
edition of the "Global Automotive Trade Report."
    While Japan's domestic auto market is down 14 percent from an already weak
1997 performance and exports to hard-hit Asian markets are off by 55 percent,
its auto exports to other major markets, including Latin America, Europe and
Canada, are up significantly.  According to AAMA, Japan should not export its
way out of recession at the expense of meaningful domestic economic reform.
    Featured in the "Japan Report" section of this month's issue is an article
on the U.S. government's fifth semiannual review of the 1995 U.S.-Japan
automotive trade agreement.  In a report released on August 13, the U.S.
government calls on Japan to "take concrete steps to further open and
deregulate its automotive sector."
    "Global Automotive Trade Report" also offers data on U.S. automakers'
exports to Mexico, provides an update on the Andean Auto Pact and reviews the
status of talks aimed at resolving the automotive trade dispute between the
U.S. and the Republic of Korea.
    To obtain a copy of the "Global Automotive Trade Report," you may log onto
AAMA's website or contact Donna Edenhart at (202) 326-5543.
    AAMA is the trade association whose members are Chrysler Corporation, Ford
Motor Company and General Motors Corporation.  Visit the site on the World
Wide Web at http://www.aama.com.