The European Community (EC) deliveredwarnings to both Japan and the United States over trade
frictions which have hit relations between the Community and
its main trading partners.
    EC foreign ministers meeting here issued a statement
deploring Japan's continued trade imbalance and appealed for
greater effort by the country to open its markets.
    Ministers also issued a statement saying they were
disturbed by moves in the U.S. to limit imports of textiles and
warned that the Community would react to any such moves.
    EC External Trade Commissioner, Willy De Clercq has already
written to his U.S. counterpart, special U.S. Trade
Representative Clayton Yeutter, outlining the EC's concerns.
    The ministers' said they were "very disturbed" by the U.S.
moves, adding, "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."
    Any unilateral U.S. moves would leave the EC no option but
to react according to the laws of the world trade body, the
General Agreement on Tariffs and Trade (GATT), they 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 added that the EC continued to insist that
the Japanese government must boost imports and stimulate
demand.
    Ministers also called on the European Commission to prepare
a report on U.S.-Japanese trade for July this year to enable
them to take action where necessary.
    One diplomat said the call for a report showed ministers
were determined not to let the Japanese question drop. "It wil
be back on the table again and again," the diplomat said.
    De Clercq told journalists, "There is a certain nervousness,
a growing impatience within the Community on trade relations
with Japan."
    But diplomats said the Community is keen to continue
talking with Tokyo to try and solve the problem rather than
embark on a costly and damaging trade war.
 Reuter
