EC WARNS U.S. AND JAPAN ON TRADE TENSIONS

  The European Community (EC) yesterday
  warned Japan and the United States, its main trading partners,
  that friction over trade issues is affecting the EC's relations
  with both countries.
      EC foreign ministers issued a statement deploring Japan's
  continued trade imbalance and appealed for the country to make
  a greater effort to open up its markets. They also said they
  were disturbed by a draft bill before the U.S. Congress that
  would impose permanent quotas on textile imports and were
  prepared to react. The U.S. Administration has already
  distanced itself from the bill.
      EC External Trade Commissioner Willy De Clercq has written
  to his U.S. Counterpart, Trade Representative Clayton Yeutter,
  outlining the EC's concerns.
      The statement said ministers were very disturbed by U.S.
  Moves towards protectionism. "The adoption of such measures
  would not fail to have a negative effect on the process of
  multilateral negotiations just started, as well as on bilateral
  relations," it said.
      Any unilateral U.S. Moves would leave the EC no option but
  to react according to the laws of the General Agreement on
  Tariffs and Trade, it said.
      In a separate statement on Japan, the EC ministers said
  they "deplore the continued aggravation of the imbalance in
  trade (and) expect Japan to open up its market more."
      The statement said the EC would continue to insist that
  Japan boost imports and stimulate domestic demand.
      Ministers also called on the EC Commission to prepare a
  report on U.S.-Japanese trade for July this year to enable them
  to take appropriate action where necessary.
      One diplomat said the call for a report showed ministers
  were determined not to let the Japanese question drop. "It will
  be back on the table again and again," the diplomat said.
      De Clercq, talking to journalists during the meeting, said,
  "There is a certain nervousness, a growing impatience within the
  Community concerning trade relations with Japan."
      But diplomats said the EC is keen to negotiate with Tokyo
  to solve the problem rather than embark on a costly and
  damaging trade war, and the ministers called for more
  cooperation with Japan in industry and research.
  

