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TRADE BILL H.R. 5100 IS STEP IN WRONG DIRECTION, JAMA SAYS

 TRADE BILL H.R. 5100 IS STEP IN WRONG DIRECTION, JAMA SAYS
 WASHINGTON, July 8 /PRNewswire/ -- The U.S. Trade Expansion Act of 1992 (H.R. 5100) is a big step in the wrong direction, the Japan Automobile Manufacturers Association (JAMA) said today.
 JAMA urged the U.S. Congress to carefully consider the ongoing development of business relations between U.S. and Japanese automakers and auto parts companies before rushing into such arbitrary measures.
 According to William Duncan, general director of JAMA's Washington office, Japan's leading automakers are disturbed by provisions of H.R. 5100 that single out the Japanese automotive industry for investigation and action under Section 301 of the 1974 Trade Act. Duncan said such prejudgment and mandatory action by the U.S. Congress would ignore extensive work already undertaken and could significantly interfere with the positive relationships which have been developing between Japanese automobile companies and the U.S. auto and auto parts industry.
 According to Duncan, Japanese and U.S. automakers already have a mechanism in place to successfully pursue expansion of U.S. auto parts sales to JAMA member companies both in Japan and the United States. JAMA is currently finalizing plans with the Motor Equipment Manufacturers Association for the third "One-on-One Conference" to be held in Las Vegas in September. These conferences are a series of individual meetings between Japanese automakers and U.S. auto parts suppliers for the purpose of exploring and developing business opportunities.
 In a recent meeting in Chicago between the chief executive officers of the Big Three U.S. automakers and the leading Japanese automakers, JAMA and the Motor Vehicles Manufacturers Association agreed to establish working groups to address the marketing of U.S. vehicles in Japan and other matters of mutual interest.
 In addition, the Japanese and U.S. governments have met regularly over the course of the Market Oriented Sector Specific (MOSS) talks since 1986 to discuss improving access to the Japanese market. During this period, purchases of auto parts from U.S. companies increased dramatically from $1.7 billion in 1985 to $10.5 billion in 1991. Requiring additional intensive and redundant federal investigation with potential fines and tariffs would be counterproductive to these efforts.
 JAMA is particularly opposed to a proposed amendment to H.R. 5100 which would mandate Japanese import quotas through the year 2000 and regulate the local content of auto parts purchased by Japanese-owned assembly plants in the United States. Duncan said these provisions were "atrociously protectionist" and would jeopardize the jobs of American auto workers, threaten the financial well-being of U.S. auto dealerships, reduce U.S. competitiveness and increase car prices for American consumers. Duncan pointed out that Japan's leading automakers have already announced voluntary plans to further double their purchases of U.S. auto parts by 1994 to a total of $19 billion.
 Duncan said despite the concern with which Japanese automakers viewed the bill, the companies remain committed to working with U.S. automakers to improve sales of American-made cars in Japan, to work with more U.S. auto parts suppliers and to purchase substantially more U.S. auto parts -- thereby increasing both employment in the United States and the competitiveness of U.S. industry.
 JAMA is the national trade association for the 13 Japanese manufacturers of motor vehicles and motorcycles. Its members include: Daihatusu Motor Co., Ltd.; Fuji Heavy Industries Ltd., Hino Motors, Ltd.; Hondo Motor Co., Ltd.; Isuzu Motors Limited; Kawasaki Heavy Industries, Ltd., Mazda Motor Corporation; Mitsubishi Motors Corporation; Nissan Diesel Motor Co., Ltd.; Nissan Motor Co., Ltd.; Suzuki Motor Corporation; Toyota Motor Corporation; and Yamaha Motor Co., Ltd.
 JAMA is dedicated to improving communication and cooperation between the U.S. and Japanese auto industries and is devoted to the dissemination of factual information on the world auto industry. JAMA, which is headquartered in Tokyo, has offices in Washington and Brussels, Belgium.
 -0- 7/8/92
 /CONTACT: John Kiker for the Japan Automobile Manufacturers Association, 202-342-7048/ CO: Japan Automobile Manufacturers Association ST: District of Columbia IN: AUT SU: LEG


DC -- DC025 -- 7592 07/08/92 17:04 EDT
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Date:Jul 8, 1992
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