Japan Keeps Car Exports to U.S. at 2.3 Million

Japan will limit its car exports to the United States to 2.3 million again in the fiscal year beginning April 1, Kyodo News Service reported today, but apparently debate on the decision continues.

It would be the 10th straight year of voluntary curbs since Japan agreed to them in 1981 under strong pressure from Washington and U.S. auto makers.

But an official of the Ministry of International Trade and Industry’s auto department said the government still is studying whether to extend the export restraints.

In 1981, Japan agreed to limit its annual exports to the United States to 1.68 million vehicles through 1983. The limit was set at 1.85 million in 1984.

When then-President Ronald Reagan decided not to ask for continued restraints in 1985, Japan set the ceiling at 2.3 million a year and has maintained that figure.

Kyodo quoted a senior MITI official as saying that if Japan stops the restraints, the United States might consider it a challenge and U.S.-Japan relations might be aggravated.