17 May 1995

JAPAN/US AUTO DISPUTE

The Minister for Trade, Senator Bob McMullan, said from London today that the publication of a retaliation list under S 301 by the United States means the dispute between the US and Japan has taken on a new dimension.

Senator McMullan said Australia acknowledges that the US has concerns about the openness of the Japanese market.

"But we do not favour unilateral action as a means to deal with these concerns," Senator McMullan said.

"Rather, we have consistently argued that the US should seek to settle the dispute multilaterally through the World Trade Organisation (WTO), and not take unilateral action.

"In this context, we note that Japan may now be proposing to raise their concerns over the US action in the WTO.

"We have a commercial interest in this dispute, and will be monitoring developments to ensure our interests are not compromised.

"We very much hope that both parties can find a way to settle the dispute amicably.

"We note also that there will be a period of at least 40 days before a decision is made on implementing sanctions.

"I am hopeful that this will provide time for constructive dialogue between the two parties," Senator McMullan said.

Further information: John Flannery, (06) 277 7420