    [Public Papers of the Presidents of the United States: William J. Clinton (1995, Book I)]
    [June 28, 1995]
    [Pages 962-964]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks on the Japan-United States Trade Agreement
    June 28, 1995

        Thank you very much, Wolf [Wolf Blitzer, CNN], for that
    introduction. [Laughter]
        Ladies and gentlemen, for 2\1/2\ years, I have worked hard to open
    markets and expand trade around the world for one simple reason: It is
    good for America. When we open new markets, millions of new consumers
    buy American products. And when we sell more American prod-

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    ucts, we create more American jobs. We created the largest market in the
    world with NAFTA. We passed GATT, the most comprehensive trade agreement
    ever.
        The plain truth is, our products are now the best in the world, high
    quality, low cost. And our job here, and my job as President, is to make
    sure they can be sold fairly and freely throughout the world. That's how
    we create prosperity here at home.
        One of the largest obstacles to free and fair trade has been the
    artificial barriers erected by Japan, especially around its auto and
    auto parts markets. For over 20 years, Presidents have tried to fix this
    problem without success. This unfair situation had to end.
        After 20 months of negotiations, I ordered my Trade Representative,
    Ambassador Kantor, to impose sanctions on Japan unless they agreed to
    open these markets. Today Japan has agreed that it will begin to truly
    open its auto and auto parts markets to American companies.
        This agreement is specific. It is measurable. It will achieve real,
    concrete results. And I have insisted on it from the start. In 1993, the
    Japanese and I agreed at our meeting in Japan on specific negotiating
    goals in the framework agreement. We have now achieved those goals. Now,
    through 2 years of steady and determined negotiations, we have done what
    we set out to do 2\1/2\ years ago.
        Trade must be a two-way street. After 20 years, we finally have an
    agreement that will move cars and parts both ways between the United
    States and Japan. This breakthrough is a major step toward free trade
    throughout the world.
        Japan will take specific steps that we expect will increase the
    number of dealers selling non-Japanese cars by 200 next year and 1,000
    over the next 5 years. In the United States, 80 percent of our car
    dealers sell foreign cars right next to American cars. But in Japan,
    only 7 percent of car dealers sell American cars or any non-Japanese
    cars. That is unfair, and this agreement makes a strong start in fixing
    it.
        Japan will begin to undo the rigid regulations of its market for
    repair parts. This agreement breaks the stranglehold Japanese
    manufacturers have had over repair shops and garages. It means more U.S.
    parts will be sold in Japan.
        Finally, Japanese carmakers will expand their production in the
    United States and buy more American parts both here and in Japan. These
    measurable plans should increase purchases of American car parts by
    almost $9 billion in 3 years, a 50 percent increase. Japan is going to
    make half a million more new cars in the United States by 1998, an
    increase of 25 percent.
        Sixty percent of our entire trade deficit with Japan is the result
    of a car and car parts deficit. This agreement helps to close the gap.
    This commitment means thousands of new jobs for American workers, jobs
    for Americans making parts sold to Japan, jobs for Americans making
    parts for Japanese cars manufactured here, jobs for Americans making
    American cars now sold in Japan, and jobs for Americans making Japanese
    models made in the United States, which will increase substantially in
    number over the next few years. It is therefore a victory for our
    hardworking families. But make no mistake, it is also a victory for
    Japanese consumers, because it will mean lower prices for good products
    for them.
        I want to commend the leaders of Japanese auto parts companies and
    auto companies and the leaders of the Japan Government for the courage
    and vision it took for them to reach this agreement. I personally want
    to thank Prime Minister Murayama and Minister Hashimoto for their
    leadership. And I especially want to thank Ambassador Mickey Kantor and
    his extraordinary team for the exhaustive efforts they have made to
    reach this successful conclusion.
        In just a few moments, as soon as I conclude here, Ambassador Kantor
    and Minister Hashimoto will have a statement in detail about this
    agreement and will answer questions about it. I'm sure you can
    understand that they are in a better position to answer detailed
    questions than I am.
        I had a long conversation with Ambassador Kantor about an hour ago,
    and I congratulated him.
        I want all of you to understand that there is still much to be done.
    This agreement will not solve every problem in our relationship. But for
    today we have proved that hard bargaining and good faith can overcome
    apparently insurmountable conflict. This is important. And what it means
    is that sanctions are not necessary because we have achieved our goals.
    I am very proud of this negotiating team. I want to say that again. We
    set out a strategy, we held firm to our principles, and we achieved our
    goals. And those goals will lead to more jobs for Amer-

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    icans. Discipline at the negotiating table once again has proved that we
    can be successful.
        And I want to say finally, again, this is a great victory for the
    American people. It is also a victory for the Japanese people. We both
    won. And as a result, the global economy and American jobs are better
    off.
        Thank you.
        Q. Is this a voluntary agreement, or are there any guarantees, Mr.
    President?
        The President. Mr. Kantor will be speaking in just a moment, and
    he'll answer all the questions.

    Note: The President spoke at 12:20 p.m. in the Briefing Room at the
    White House. In his remarks, he referred to Ryutaro Hashimoto, Japanese
    Minister of International Trade and Industry.