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Global Automotive Trade Report Tells A `Tale of Two Trade Agreements'

29 October 1998

Global Automotive Trade Report Tells A `Tale of Two Trade Agreements'

    WASHINGTON, Oct. 28 -- According to the American Automobile
Manufacturers Association (AAMA), the U.S. government -- just after announcing
on October 20 that a new auto agreement had been made with the Republic of
Korea -- is gearing up to talk trade again. U.S. government officials will
convene in San Francisco on October 29 to begin the third annual bilateral
review of the 1995 U.S.-Japan automotive trade agreement.
    AAMA's analysis of both the U.S.-Korea trade pact and the U.S.-Japan
automotive trade agreement can be found in October's special edition of the
"Global Automotive Trade Report."
    Recent negotiations between the United States and Korea were concluded at
the deadline for resolution of the U.S. government's unfair trade case against
Korea, initiated one year ago under the "Super 301" process. The new agreement
was created with the intention of boosting the presence of imported autos in
Korea. The agreement lays out two goals: 1) increased market access for
foreign automobiles, and 2) establish conditions in which Korea's motor
vehicle sector operates according to market principles. The four areas of the
agreement that address those objectives are highlighted in AAMA's "Global
Automotive Trade Report."
    As U.S. government officials prepare to review the 1995 U.S.-Japan
automotive trade agreement, AAMA explains that Japanese market presence has
not improved since the last government consultations one year ago. AAMA does
note, however, that the recent strengthening of the yen and new Japanese
economic and fiscal initiatives have given hope for a turnaround in the
Japanese auto market's two-year slide and a new start for imported auto sales.
The "Global Automotive Trade Report" provides sales figures for imported autos
in Japan and identifies new dealer outlets that have opened since the
agreement was signed.
    This month's "Global Automotive Trade Report" also shares "U.S. reaction
to the Korean Auto Deal" as well as some notable quotes in "What Others Are
Saying."
    To obtain a copy of the "Global Automotive Trade Report," you may log onto
AAMA's Web site 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 AAMA's site on the World Wide Web at http://www.aama.com.