U$.$S$.$ Complaints $1.$ Small import share in Japan$$s auto and autoparts markets. $2.$ Belief that barriers are the reason for the low market share. a$)$ the control of auto dealerships by Japanese auto makers, making it difficult for U$.$S$.$ firms to use the existing distribution network to sell their cars. They would have to establish their own dealerships. b$)$ close business relationship between Japanese auto makers and autoparts suppliers, making it difficult to sell parts in Japan. c$)$ Japanese govt. regulations under which the Ministry of Transportation $($MOT$)$ certifies which parts can be used as replacement parts, requires inspections for a broad range of repairs and certifies the facilities that perform the repairs. Certified garages tend to be linked to auto dealerships, which are linked to auto makers and their parts suppliers. MOT maintains a list of certified parts but the U$.$S$.$ Trade Representative $($USTR$)$ claims that this list is not available to facilities other than those that are certified. Therefore, foreign firms can$$t determine what criteria are used in certifying parts. The USTR also complains that the range of repairs requiring certification is too broad. d$)$ although not an issue of the $1995$ dispute, U$.$S$.$ auto producer also have complained that Japanese taxes on cars by tonnage discriminates against U$.$S$.$ cars, which tend to be heavier than Japanese cars. U$.$S$.$ Requests a$)$ Have more Japanese auto dealers willing to sell multiple brands of cars, particularly U$.$S$.$ cars. b$)$ Extend the voluntary parts purchasing plan by Japanese automakers $($initially announced in $1992$ when Pres. Bush visited Tokyo with Big Three auto executives. The Japanese auto makers promised to increase purchases of foreign$-$made parts from $$9$ billion to $$19$ billion by the end of Japan$$s fiscal year $1994.$ They reportedly met this objective$)$ c$)$ Change the system of repair regulation to increase the number of certified garages, decrease the number of mandatory inspections, separate certified garages from facilities that perform inspections, and deregulate the critical parts list to allow more foreign parts. Key Issues $1.$ The U$.$S complains that close business ties between firms in Japan pose a barrier to market access. They argue that Japan$$s antitrust laws must be better enforced to insure new entrants have the ability to enter the market and compete. $2.$ The U$.$S$.$ complains that Japanese govt. regulations are designed to restrict foreign competition. They demand more deregulation of the Japanese economy