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Automakers Say Japan Must Deliver on Auto Trade Agreement

2 November 1998

Automakers Say Japan Must Deliver on Auto Trade Agreement

    WASHINGTON, Oct. 30 -- The American Automobile Manufacturers
Association (AAMA) issued the following statement regarding the annual
automotive trade consultations between the governments of the U.S. and Japan,
which concluded today in San Francisco, California:

    "U.S. and Japanese government officials meeting during the past two days
to review the third year of the 1995 automotive trade agreement found little
good news to report since their last meeting one year ago. Japan's recent
economic problems have devastated new car and truck sales in that country and
imports have been hurt the most. Market share for all imports has fallen to
4.6 percent, lower than where it stood when the agreement was negotiated,
while AAMA-member companies report that vehicle sales in Japan are down 31
percent for the first nine months of 1998
    "U.S. officials this week urged the Japanese government to renew its
commitment to the objectives of the 1995 auto trade agreement. AAMA is pleased
that the United States continued to stress that opening Japan's market further
to imports and deregulating the country's economy will have benefits for both
countries. This view was strongly echoed by observers from the governments of
Canada, Australia, and the European Union.
    "Specific U.S. government proposals to streamline Japan's new vehicle
registration system would be especially helpful for importers, who are most
burdened by the current system. Also, the establishment or financial incentive
programs that could benefit importers, a new proposal discussed by negotiators
this week, could provide an important boost for sales of imported autos.
    "Three years after the auto trade agreement was negotiated, its objectives
are more relevant than ever. Chrysler, Ford, and General Motors remain
strongly committed to the Japanese market and hope that the Japanese
government will follow through on its recently proposed financial and economic
reforms, and will take new steps to deregulate and open its market to imported
autos."

    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.