IDEAS home Printed from https://ideas.repec.org/p/csg/ajrcau/310.html

Trade Conflicts between Japan and the United States over Market Access: The Case of Automobiles and Automotive Parts

Author

Listed:
  • Masao Satake

Abstract

The conspicuous feature of bilateral trade conflicts between Japan and the United States in the 1980s and early 1990s was the shift from protecting the US market from Japanese exports to negotiating greater US access to the Japanese market. This paper takes the negotiations over automobiles and automotive parts as a case study to examine why the market-access policy evolved in the United States and how Japan responded. The US government had two main strategies: a managed-trade approach and a harmonisation approach. The managed-trade approach of the Framework Talks in the early 1990s was intensely resisted within Japan, and the Japanese government rejected the approach. The harmonisation approach has been consistent with Japanese policy, as represented by the Mayekawa Report, and the Market-Oriented, Sector-Specific (MOSS) and Structural Impediments Initiative (SII) talks between the United States and Japan were more successful and harmonious. The intensity of the trade conflicts in the early 1990s has not been a feature of trade talks in recent years, and the paper looks into the factors behind this change.

Suggested Citation

  • Masao Satake, 2000. "Trade Conflicts between Japan and the United States over Market Access: The Case of Automobiles and Automotive Parts," Asia Pacific Economic Papers 310, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:csg:ajrcau:310
    as

    Download full text from publisher

    File URL: https://crawford.anu.edu.au/pdf/pep/pep-310.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bela Balassa & Carol Balassa, 1984. "Industrial Protection in the Developed Countries," The World Economy, Wiley Blackwell, vol. 7(2), pages 179-196, June.
    2. Jagdish Bhagwati, 1989. "Protectionism," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262521504, December.
    3. C. Fred Bergsten & Marcus Noland, 1993. "Reconcilable Differences? United States-Japan Economic Conflict," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 34, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Warwick Mckibbin & Dominick Salvatore, 1995. "The global economic consequences of the Uruguay Round," Open Economies Review, Springer, vol. 6(2), pages 111-129, April.
    2. Fukunari Kimura & Robert E. Baldwin, 1998. "Application of a Nationality-Adjusted Net Sales and Value- Added Framework: The Case of Japan," NBER Chapters, in: Geography and Ownership as Bases for Economic Accounting, pages 49-82, National Bureau of Economic Research, Inc.
    3. Marcus Noland & Howard Pack, 2002. "Industrial Policies and Growth: Lessons From International Experience," Central Banking, Analysis, and Economic Policies Book Series, in: Norman Loayza & Raimundo Soto & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Editor) (ed.),Economic Growth: Sources, Trends, and Cycles, edition 1, volume 6, chapter 9, pages 251-308, Central Bank of Chile.
    4. Robert A. Blecker, 1998. "International Competitiveness, Relative Wages, and the Balance-Of-Payments Constraint," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 20(4), pages 495-526, July.
    5. R Hayter & D W Edgington, 1999. "‘Getting Tough’ and ‘Getting Smart’: Politics of the North American — Japan Wood-Products Trade," Environment and Planning C, , vol. 17(3), pages 319-344, June.
    6. Donges, Juergen B., 1986. "Whither international trade policies? Worries about continuing protectionism," Kiel Discussion Papers 125, Kiel Institute for the World Economy (IfW Kiel).
    7. Joseph E. Gagnon & C. Fred Bergsten, 2012. "Currency Manipulation, the US Economy, and the Global Economic Order," Policy Briefs PB12-25, Peterson Institute for International Economics.
    8. Deborah L. Swenson, 2004. "Foreign Investment and the Mediation of Trade Flows," Review of International Economics, Wiley Blackwell, vol. 12(4), pages 609-629, September.
    9. Jozef Konings & Hylke Vandenbussche & Linda Springael, 2001. "Import Diversion under European Antidumping Policy," Journal of Industry, Competition and Trade, Springer, vol. 1(3), pages 283-299, September.
    10. Sven Arndt, 1996. "North American Free Trade: An assessment," Open Economies Review, Springer, vol. 7(1), pages 77-92, January.
    11. Rodrik, Dani, 1994. "What does the Political Economy Literature on Trade Policy (Not) Tell Us That We Ought to Know?," CEPR Discussion Papers 1039, C.E.P.R. Discussion Papers.
    12. Deborah L. Swenson, 1996. "Explaining Domestic Content: Evidence from Japanese and U.S. Auto Production in the U.S," NBER Working Papers 5495, National Bureau of Economic Research, Inc.
    13. Susan Strange, 1995. "European Business in Japan: A Policy Crossroads?," Journal of Common Market Studies, Wiley Blackwell, vol. 33(1), pages 1-25, March.
    14. Mr. Arvind Subramanian, 1997. "The Egyptian Stabilization Experience: An Analytical Retrospective," IMF Working Papers 1997/105, International Monetary Fund.
    15. Ito, Hiro, 2009. "U.S. current account debate with Japan then, with China now," Journal of Asian Economics, Elsevier, vol. 20(3), pages 294-313, May.
    16. Schnabl, Gunther & Gurbaxani, Indira, 1997. "Zielsetzungen und Strategien im japanisch-amerikanischen Handelskonflikt," Tübinger Diskussionsbeiträge 114, University of Tübingen, School of Business and Economics.
    17. Sinha, Radha, 1995. "Economic reform in developing countries: Some conceptual issues," World Development, Elsevier, vol. 23(4), pages 557-575, April.
    18. Nagaoka, Sadao, 1997. "Economic consequences of VIE when consumers are constrained," Japan and the World Economy, Elsevier, vol. 9(4), pages 557-565, December.
    19. Marcus NOLAND, 2007. "From Industrial Policy to Innovation Policy: Japan's Pursuit of Competitive Advantage," Asian Economic Policy Review, Japan Center for Economic Research, vol. 2(2), pages 251-268, December.
    20. Takemori, Shumpei & Tsumagari, Masatoshi, 1997. "A political economy theory of foreign investment: An alternative approach," Japan and the World Economy, Elsevier, vol. 9(4), pages 515-531, December.

    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:csg:ajrcau:310. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akira Kinefuchi The email address of this maintainer does not seem to be valid anymore. Please ask Akira Kinefuchi to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/ajrccau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.