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AAMA Reaction to Report Monitoring U.S.-Japan Auto Agreement

4 December 1997

U.S. Government Report Highlights Lack of Action by Japanese, Automakers Say

    WASHINGTON, Dec. 4 -- The following statement was issued
today by Andrew H. Card, Jr., President and CEO of the American Automobile
Manufacturers Association (AAMA), in response to the release of the U.S. Trade
Representative's Fourth Semi-Annual Report to the President of the Interagency
Enforcement Team regarding the 1995 U.S.-Japan Agreement on Autos and Auto
Parts.

    "Although we are almost midway through the five-year U.S.-Japan Auto
Agreement, Japan is nowhere near the halfway mark in meeting expected market-
opening results under the Agreement.
    "The report emphasizes the increasing U.S. concerns and disappointment
that Japan has not taken sufficient action to deregulate and open up its
restricted auto market, despite pledges made in 1995 as part of the bilateral
auto agreement.  Import vehicle sales are down, there are far too few dealer
outlets, and the Japanese Government has been foot-dragging on deregulating
the parts sector.  Despite Japan's inaction, the report highlights the
significant efforts U.S. vehicle and parts producers have been making to
increase sales in Japan.
    "It's important to note that the U.S. is not alone in expressing
frustration with Japan.  Representatives from the European Union, Canada, and
Australia echoed U.S. complaints about the lack of Japanese action on these
issues during talks held in San Francisco in early October to review the
Agreement.
    "With the financial crises unfolding in Asia and the yen now approaching
130 yen to the dollar, it is Japan's responsibility, now more than ever, to
show leadership by taking immediate, major deregulatory and market-opening
action to foster domestic demand-led growth.  Japan must take such steps to
put its economy on more firm financial footing.  The auto sector would be a
good place to start."

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

SOURCE  American Automobile Manufacturers Association