UNITED STATES/JAPAN AUTO DISPUTE
The Minister for Trade, Senator Bob McMullan, said today that to safeguard Australia's exports and jobs the Government has decided to lodge a request to participate as a 'third party' in the World Trade Organisation (WTO) consultations sought by Japan.
The consultations relate to the dispute between the United States (US) and Japan over autos.
Senator McMullan said Australia has a significant interest in the consultations requested by Japan over the proposed US unilateral action.
"Australia's automotive industry employs 47,000 people," Senator McMullan said.
"Japan is a major market for our automotive exports, accounting for around 20 per cent of our motor parts exports. Our total auto sector exports to Japan are around $200 million a year.
"Japan is also one of Australia's major markets for coal, iron ore, other minerals and processed minerals, a high proportion of which is consumed by the Japanese auto industry as raw materials.
"The WTO explicitly provides for countries to seek to safeguard their interests in the case of a trade dispute. In requesting participation in the consultations as a 'third party', we are exercising that legal right.
"The Government is committed to take all possible steps to ensure that any settlement of the dispute between the US and Japan does not discriminate against any Australian suppliers," Senator McMullan said.
Senator McMullan said that because of our substantial trade interest in the Japanese auto market, it is also our intention to request participation in the WTO consultations foreshadowed by the US in relation to Japanese import restrictions on autos.
"Our decision to request participation in both sets of consultations is consistent with the position we have taken since the outset. We are not taking sides in this dispute. We are not in favour of unilateral action as a means to deal with trade disputes, and we encourage Japan to adopt a faster pace of trade liberalisation.
Further information: John Flannery, 61-6-277 7420
Bob McMullan Minister for Trade
Parliament House, Canberra, ACT 2600 Tel: 61-6-277 7420 Fax: 61-6-273 4128