Auto Industry Group Said Japan’s Yen Policy Harms U.S. Industry – Brief Article
A senior U.S. auto industry official said that the efforts by the Japanese government to “artificially maintain a weak yen through intervention” is contributing to the large trade deficit of the U.S. and harming Japan’s economy. “Rather than promote a weak yen, Japan should be stimulating domestic demand to address its problems,” said Automotive Trade Policy Council President Stephen J. Collins. The Automotive Trade Policy Council members are Ford, General Motors and DaimlerChrysler.
“Over the last three years, U.S. automakers have been significantly affected by Japan’s artificially weak yen, which has allowed Japanese automakers to capture U.S. market share and enjoy windfall profit advantages,” Collins told a recent gathering of Japanese and U.S. government officials in San Francisco.
The result of Japanese government intervention is a 20 percent reduction in value of the yen against the dollar since January 2002, Collins said. This creates a “significant competitive advantage over U.S. manufacturers,” Collins added.
“The impact of this policy on the U.S. auto industry and its workers has been sharp and painful,” Collins said. “While U.S. auto companies and suppliers have faced cutbacks and huge losses, Japanese auto companies are racking up record profits. This has resulted in a huge increase in Japanese auto exports to the U.S. and, not surprisingly, a commensurate increase in U.S. market share, Collins added.
The recent appreciation of the yen has been met with “a renewed campaign of public comments by almost all senior Japanese financial officials to further weaken the yen,” Collins claimed.
COPYRIGHT 2003 International Trade Services
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