DUTCH OFFICIAL WARNS OF MORE TRADE CONFLICTS
Already strained relations between
the U.S. And the European Community (EC) are likely to get
worse before they get better, director general of the Dutch
Economics Ministry's foreign affairs division Frans Engering
said.
    Speaking at an American Chamber of Commerce lunch in The
Hague, Engering noted the developing history of crises over
steel, citrus and pasta, and warned of more to come.
    "I consider the strident tone of US declarations on Airbus
ill-advised, and the EC fats and oils tax proposal a dangerous
provocation," he said. "I feel that we shall probably have to
deal with quite a few more crises in the foreseeable future."
    Not only is the US Congress clearly very determined to get
the American balance of payments into better shape, but the
risks of brinkmanship are all the greater because the EC has
its own constraints in meeting outside pressure, Engering
noted.
    "If we ask ourselves whether it is perhaps inevitable that
we keep pushing each other to the brink of actual trade war,
then I think the answer is probably yes," he said.
    In order to reduce these tensions, decision-making in the
EC must become less self-centred, and the US Administration
will have to exercise the authority to convince Congress and
pressure groups of the need for accommodation, he added.
 Reuter
