Japans 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 dollars 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 100000 cars whereas we sell only 40000 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 Japans 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.
EC SAYS JAPAN CAR EXPORT RESTRAINT NOT ENOUGH