WASHINGTON, D.C., June 7, 1995--The Japan Automobile Manufacturers Association (JAMA) challenged the Administration's proposed 100% duties on Japanese autos as inappropriate, indefensible and illegal. The Administration, urged on by Ford, GM, Chrysler and a few of their suppliers, is arbitrarily punishing U.S. consumers and workers.

In testimony to be delivered tomorrow before the U.S. Trade Representative's Section 301 Committee, William C. Duncan, JAMA General Director, Washington office, says "unilateral, retroactive and discriminatory imposition of punitive tariffs clearly violates U.S. obligations under the World Trade Organization (WTO)."

"These duties are not justified by any substantive findings, nor does it appear any serious investigation was ever conducted. This trade dispute and the retaliation are, in fact, outrageous punishment against Japan's automakers for not agreeing to U.S. demands for 'voluntary plans' to buy U.S.-made auto parts at levels set by the Administration. Coercion will not work," Duncan added.

JAMA testimony states the U.S. Trade Representative also cannot justify it's quantification of alleged damages. The $5.9 billion target could only have been arrived at by comparing import shares of the total parts market in Japan to the markets in the U.S., Canada and Mexico. These are NAFTA markets, and the import shares are distorted by intra-Big 3 trade.

"The history of U.S. protectionist trade actions is marked by one consistent effect--consumers always suffer. American consumers will pay, and pay dearly for the Administration's effort to protect the Big 3 from further competition," Duncan said.

JAMA is the national trade association of the 13 Japanese manufacturers of motor vehicles and motorcycles.

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