MEDIA RELEASE THE AUSTRALIAN DEPUTY PRIME MINISTER AND MINISTER FOR TRADE TIM FISCHER

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27 February, 1997

AUSTRALIA WELCOMES FURTHER DEREGULATION OF JAPANESE AUTO PARTS MARKET

The Deputy Prime Minister and Minister for Trade, Tim Fischer, today welcomed deregulation measures in Japan's auto parts market which came into effect on February 20.

"Australian producers, who are already substantial exporters of automotive parts to Japan, stand to benefit from this relaxation of Japanese regulations," Mr Fischer said.

"The changes should make it easier for foreign made replacement parts to be offered to Japanese consumers, as lower-priced alternatives to original supplier parts."

Under the Japanese system, certain categories of automotive repair work can be performed only by certified garages. The Japanese Government has been deregulating the industry both through expanding the categories of garage which qualify for certification, and by removing some automotive systems and components from the need for certified repair.

As of February 20, the Japanese Government has provided the option for "Special Designated" and "Specialised Certified Garages" to perform disassembly repair under the Japan Road Vehicles Act. This will give a wider range of garages the option of undertaking certifiable work on engine, transmission, running, steering, brake, and suspension systems, and coupling devices.

This latest deregulatory step follows other measures Japan has introduced in the automotive parts sector. The certification system in respect of shock absorbers, struts, power steering systems, and trailer hitches was relaxed in October 1995, and in respect of clutches for two wheel drive vehicles, stabilisers, torque rods and torsion bar springs, in August 1996.

"We encourage the Japanese authorities to continue to examine the scope for further deregulation in this area," Mr Fischer said. "For example, brake systems have not been removed from the category of disassembly repair, and therefore are still subject to certification."

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