Political Quotes

“as the United States-Japan framework negotiations in autos and auto parts accelerate over the next few weeks, I want to bring to my colleagues attention a New York Times op-ed by Thomas L. Friedman published on April 16. Mr. Friedman describes the problems American auto and auto parts manufacturers face when trying to sell their products into Japan's closed market and our limited chances of opening these protected markets unless we are willing to impose reciprocal treatment on Japan's products in this country. Regarding the likelihood of concluding a market opening deal in the framework negotiations with Japan anytime in the near future, Mr. Friedman says: Don't hold your breath. The Japanese will literally do anything to preserve their domestic car monopoly, even though it is one of the major causes of the massive trade imbalance between the U.S. and Japan that is, in turn, causing the yen to soar in value against the dollar. In fact, the higher the yen goes the less likely Japan is to open its auto market. With the yen rising against the dollar, Japan's cars become more expensive and difficult to sell in the U.S., so Japanese auto company profits are squeezed. That makes it all the more important for Japanese auto makers to protect their home market from competition, so they can charge higher prices there and run up profits they need to cover losses abroad. What the U.S. is seeking is an end to Japan's barriers.”