The U.S. warned its major trade partners that its trade deficit must fall by September or a protectionist trade bill from Congress would be highly likely. Meanwhile European Community (EC) external trade chief Willy de Clercq said that if Japans trade surplus which hit almost 90 billion dlrs last year continued so high there would be stormy weather ahead. U.S. Trade representative Clayton Yeutter told trade leaders from Japan the EC and Canada that there was at least a 50-50 chance that a protectionist bill reaching the House of Representatives this week would pass the Senate in September. The U.S. economy badly needed better trade figures by then or President Ronald Reagan would have a difficult time vetoing such a bill he said according to a series of briefings to reporters by official delegates at the weekend meeting. A 15 billion dlr U.S. Trade deficit in March had only incensed Congress further he said.
U.S. WARNS OF TRADE BILL, EC ATTACKS JAPAN