Japan and the United States: Market Access in the Automotive Industry

Abstract

During the past thirty years in U.S.-Japan Automotive Trade, the number of confrontations between U.s. and Japanese auto manufacturers have increased tremendously over issues concerning fair and free-trade. The disputes manifested in their relationship are the products of political, economical and social differences between the United States and Japan, which ultimately influence decisions made on both sides pertaining to current trade policy matters. These issues raise questions over the definition of free trade, and if the government should play a role in maintaining the health and survival of its nations automotive industry. This paper addresses the primary issues that have, to this date, kept the relationship from showing signs of improvement, and examines the difficulties both countries have faced in making concessions that could otherwise have helped to alleviate many of U.S.-Japan automotive trade problems. This paper attempts to explain the benefits both countries would receive if they adopted a policy of mutual cooperation and gives suggestions on how to proceed with trading strategies so that both countries can gain the most benefit. Japan and the United States, through more cooperative efforts, have the ability to find an acceptable resolution to their trade problems, however, there have been fundamental disparities on both sides that Japan and the United States need to learn first before the relationship can be a success.