Import deal worries car makers

BRUSSELS - France and Italy have complained about Europe's car agreement with Japan and have written to the EC Commission voicing concern at the rising level of imports, writes Andrew Marshall.

With new figures showing Japan's market share rising strongly, the two countries believe that the deal limiting Japanese imports, agreed only a month ago, is flawed. They argue that it failed to take adequate account of the fall in demand for cars resulting from Europe's slowing economy.

National limits on car imports were abolished at the beginning of the year. As a transitional measure, the EC agreed a monitoring deal that would reduce the overall level of Japanese imports while allowing them to rise in countries that had previously applied limits - Britain, Italy, France, Spain and Portugal.

Although this in effect phases in imports until 2000, the pace at which it does so and the way it has been calculated have angered French car manufacturers.

Figures from the Association of European Automobile Constructors show the Japanese took 12.6 per cent of the market in March compared with 11.8 per cent a year earlier. Volkswagen, Peugeot and Renault saw market share fall, although Fiat's rose slightly.