Auto agreement only a first step. This was the essence of the U.S. government and auto industry position in the 1995 U.S.-Japan auto trade dispute. AISI stood solidly with the U.S. government and auto industry during that dispute, arguing that prompt and meaningful access to Japanese markets for world-class U.S. automotive producers was a vital national interest. AISI supports, as a first step, the agreement the two sides reached in 1995. Other efforts needed.
Exchange rates can be major determinants of fair or unfair trade.
This experience shows that the U.S. must stringently monitor foreign governments' policies to ensure that they do not manipulate their currency's exchange rate in order to secure a nonmarket-based advantage in trade. The Japanese government's toleration of domestic steel cartel behavior and the active participation by Japanese steelmakers in international steel cartel activity have limited the ability of highly competitive U.S. and North American steel producers to export to Japan and other markets. What hurts autos hurts steel. The continued health of this industry is absolutely critical to steel, and closed Japanese automotive markets have caused significant harm to U.S. and North American producers of motor vehicles and auto parts. What helps autos helps steel.