EC SAYS JAPAN CAR EXPORT RESTRAINT NOT ENOUGH
Japan"s 1987 car export
restraint to the European Community (EC) is not enough, EC
external trade chief Willy de Clercq said.
    There are also strong signs Japanese exporters are
diverting cars to the EC after the dollar"s fall against the yen
made their U.S. Market unprofitable, he told reporters after
meeting U.S., Japanese, and Canadian trade ministers.
    The EC has agreed that if it detects an abnormal diversion
in Japanese exports from the U.S. To the EC market due to
currency movements over the past two years, it will move to
prevent it, he said.
    Over the period, the yen has risen against the dollar
almost eight times as fast as against the European Currency
Unit, he said.
    Japan has set an unofficial, voluntary 10 pct rise in car
exports to the EC this year as part of its efforts to stop its
rising trade surplus with the Community, which hit a record 18
billion dlrs last year.
    But Japanese car exports to the EC so far this year jumped
over 30 pct compared to a drop of 17 pct in U.S. Sales, and a
seven per cent fall globally. "We think there is some diversion
there," said de Clercq.
    Japanese officials say the overall annual rise will be only
10 pct.
    "But even 10 pct is 100,000 cars, whereas we sell only
40,000 cars to Japan (per year) in total," he said.
    The EC is also demanding that Japan ease its strict checks
and requirements for imported cars, which Brussels says is a
non-tariff barrier.
    The EC is also worried because EC demand for cars is
falling this year, making any rise in Japanese imports even
more serious for EC auto manufacturers.
    De Clercq, who has taken a hard line on world trade
problems at this weekend meeting in central Japan, said the EC
appreciated Japan"s plans to cut exports and lift domestic
growth instead.
    "But even if all these measures are implemented, it will
take time. But there is not time," he said.
    "There are burning issues on the table which cannot wait. It
were better that the fire were put out immediately and not to
wait till the house burns down," he said.
 REUTER
