Car deal worries E.E.C.

Press, 4 May 1981, Page 9

Car deal worries E.E.C.

■ J NZPA-Rputer Brussels The Europeans Common Market . Commission has asked Japan and the United States for urgent clarification about Japan’s agreement to limit car exports to the United States. E.E.C. officials said Common Market authorities, already under pressure from Japanese car imports, were worried that the United States-Japan . agreement could mean that extra sales would be. diverted from the American market to the E.E.C. . :i . In a statement, the E.E.C. Commission did not specifically say that it ■would demand a similar voluntary restraint agreement between Japan and the European Community. . But it said it would study the impact of the United States-Japan accord at its weekly meeting next Wednesday and report back tothe Governments of the 10 E-E.C. member States. 1 Z'Thej commission has asked urgently for clarification from the Japanese and United States authorities and will be considering the details and implications for world trade,” the commission Statement said.

i The Japanese Prime Minister (Mr Zenko Suzuki) made clear yesterday that he saw no automatic link between Jhe United States pact and restraint of exports to the E.E.C. and Canada. E.E.C. Commission -officials admit that their requests for similar treatment ire weakened because a number of countries, including Italy, France, and Britain, are already restricting imports of Japanese cars. But after taking 10.4 per cent of the E.E.C. . car market last year, Japanese car sales had continued, to cause problems in some E.E.C. countries this year, particularly Belgium.