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AAMA: Latest Trade Numbers Confirm Lack of Action by Japanese

21 October 1997

AAMA: Latest Trade Numbers Confirm Lack of Action by Japanese

    WASHINGTON, Oct. 21 -- Andrew H. Card, Jr., President & CEO
of the American Automobile Manufacturers Association (AAMA), released the
following statement today concerning August trade figures from the U.S.
Department of Commerce.

    "Trade figures released today confirm the assessment made earlier this
month by the U.S. Government that Japan is not taking action to achieve the
market-opening and deregulatory goals of the 1995 U.S.-Japan Auto Agreement.
    "The numbers speak for themselves: the U.S. trade deficit with Japan is
21.9 percent worse than it was last August, due mostly to an imbalance in auto
trade.  Imports from Japan were up by 20.3 percent in August; U.S. vehicle
exports to Japan are down 35.9 percent for the year.
    "September figures released by the Japanese Ministry of Finance yesterday
echo this alarming trend. Japan's trade surplus in the first half of its
fiscal year was up 75.9 percent, increasing 55.3 percent with the United
States alone.  Moreover, Japan's auto exports to the U.S. were up 27.4
percent, while auto imports were down 22.9 percent.
    "It is clear that Japan is unable to move beyond the patterns of the past.
Japan continues to depend on an overly weak yen to export its way out of its
problems.  Even within Japan there is a growing belief that it would be in the
best interest of Japan's consumers for Japan to deregulate. These trade
figures underscore the need for serious action.  It's time for Japan to open
its market, deregulate, and increase consumer demand, both to benefit its own
consumers and to avoid trade friction."

    AAMA is the trade association whose members are Chrysler Corporation
, Ford Motor Company and General Motors Corporation
.  Visit the association's site on the World Wide Web at
http://www.aama.com.

SOURCE  American Automobile Manufacturers Association