WRITTEN QUESTION E-2580/97 by Marie-Noëlle Lienemann (PSE) to the Commission (24 July 1997)

Subject: EU-Japan agreement on motor vehicles

What steps will the Commission take to review the EU-Japan agreement on motor vehicles signed in July 1991?

Can the Commission say whether the level of penetration of Japanese cars in Europe has increased significantly since the agreement was signed?

Have controls been applied to ensure that Japanese manufacturers have not sold more cars than provided for under the agreement?

Given the worsening unemployment problems in the sector, will the Commission intervene with regard to training and restructuring as provided for under the agreement?

Answer given by Mr Bangemann on behalf of the Commission (23 October 1997)

The agreement signed in July 1991, known as the 'elements of consensus', is a transitional measure allowing European manufacturers a period of time to restructure in order to be able to compete in a fully open European market on an equal footing with other global competitors. Under the terms of the 'elements of consensus', and in keeping with the Community's international obligations under the World trade organisation (WTO), the agreement will expire on 31 December 1999.

The elements of consensus provide that Japan will monitor exports to the Community and the five Member States that previously restricted imports, during this transitional period. The elements of consensus contain forecasts of exports in 1999, linked to assumptions about demand in that year. The forecasts for the intervening years are worked out through regular consultations between the Commission and the Government of Japan. In the process they take account of market developments. Forecasts for exports to the five Member States that previously restricted imports from Japan are directly linked to the forecast change in demand for those countries.

As regards the actual number of cars exported from Japan to the Community, it should be noted that in 1993 this was in line with the forecast agreed between the Commission and MITI, whereas since 1994 actual exports have lagged behind the forecasts made by the Commission and MITI. Exports to the enlarged Community in 1995 were 795 000 units, and exports in 1996 were 808 000 units ((Source: Japanese Automotive Manufactures'Association (JAMA) and AAA. )), whereas forecast levels of exports to the Community in those years were 1 063 000 units in 1995 and 1 079 000 units in 1996.

Training and restructuring are primarily the industry's responsibility. However, improved vocational training and promotion of human resource development are also top priorities of Commission policy designed to ensure the competitiveness of the industry. To this end the Commission has launched objective 4 of the structural funds, and the ADAPT and small and medium enterprises (SME) Community initiatives, aimed at funding intangible investment to facilitate the adaptation of workers to industrial change. The principal aim of these initiatives is to strengthen employment and job qualifications, to address future skills needs and to anticipate the consequences of industrial change and changes in production systems. Furthermore, two parallel transnational networks of industry training experts from the automobile manufacturers and from the automotive component suppliers have been set up with funding from the Leonardo programme. The objective of these networks is to stimulate the exchange of information, the dissemination of best practice and the development of innovative new training products.