The European Community (EC) haseffectively given Japan six weeks to take moves to open its
market to imports before it decides on possible tough
retaliatory trade measures, EC diplomats said.
    They said EC foreign ministers will meet on May 25 and 26
to review the state of trade relations between the two sides.
    The EC executive commission was asked by representatives of
member states on Friday to propose a renunciation of some EC
pledges to the world trade body, GATT, unless there are
"adequate and early measures to open the Japanese market."
    Such a renunciation would be the first step to imposing
stiff increases in duties, or quantitative limits, on Japanese
exports.
    The diplomats said it was unlikely that the issue would be
discussed in detail at the next meeting of EC foreign ministers
on April 27 and 28 in Luxembourg as time was needed to prepare
proposals for possible retaliatory action.
    They said the commission has powers to take some limited
action before getting ministerial approval to prevent Japanese
exports of electrical, photographic and other goods being
diverted to Europe following of possible U.S. Tariff moves.
    In May, the ministers are also likely to discuss how to
prevent Japan from getting an extra trading advantage as a
result of Spain and Portugal joining the bloc, which obliges
them gradually to reduce tariffs on many industrial goods.
    Japan's trade surplus with the Community has grown
steadily, registering a record 2.13 billion dlrs in March.
 Reuter
