WASHINGTON, D.C., September 9, 1994 -- The Japan Automobile Manufacturers Association (JAMA) today outlined three crucial principles for success in the trade "Framework" discussions between the U.S. and Japan which have reached a critical stage.

These principles are as follows:

• The "Framework" talks should be limited exclusively to matters subject to government scope and responsibility.
• Governments should not adopt any mechanisms, voluntary or otherwise, that would establish numerical targets or attempt to manage trade or interfere with corporate decision-making.
• The U.S. and Japan should share equally the responsibility for addressing problems raised.

These principles were issued as the U.S. government is now meeting with its largest trading partners in Los Angeles today to discuss multinational economic cooperation and implementation of the Uruguay Round Agreement, reached under the General Agreement on Tariffs and Trade (GATT). This Quad Trade Ministerial meeting consists of Canada, European Union (EU), Japan and the U.S.

At the same time, the ministers of Japan and the U.S. will meet in a continuation of the bilateral discussions known as the "Framework."

"U.S. policy toward Japan, and the philosophy behind it, must match its policies with its other trading partners. If the U.S. examines its stance toward Japan in the light of discussions at the Quad Ministers meeting it will find the two wholly inconsistent. You cannot be a free trader on the one hand, and advocate a managed trade, command and control approach on the other. The strategies are not only dangerously in conflict, the conflict threatens to destroy the enormous accomplishments to date in trade with Japan," Dr. William C. Duncan, JAMA General Director said today.

"Mandating voluntary targets renders them no longer voluntary. International cooperation must be based on business-to-business solutions, not on threats. For example, last year Japan's automakers bought $15.5 billion in U.S.- made auto parts, or six times the $2.5 billion purchased in 1986. They did this based on sound business decisions," Duncan added.

In addition, U.S. car sales in Japan increased by 150% through August compared to the first eight months in 1993. Meanwhile, the overall market share for imported cars in Japan exceeded 10% last month.

"Governments can't force people to buy certain cars nor dealers to sell them. Developing business through threat or coercion simply will not work," Duncan concluded.

For more information, contact Charley Powers, (202) 452-1670--JAMA News Bureau