Advertisement

U.S. Orders Standby Curbs on Europe’s Wine, Sweets : Portugal, Spain Spur Retaliation

Share
From Times Wire Services

President Reagan today imposed standby restrictions on a variety of European exports to the United States, including white wine, beer and chocolates, in retaliation for trade restrictions on U.S. sales in Portugal and Spain.

The restrictions--which could take the effect of quotas or higher tariffs--could mean higher consumer prices for these products.

However, the immediate impact of the restrictions was delayed. Presidential spokesman Larry Speakes said the new quotas would take effect only at the point at which U.S. sales are actually hampered.

Advertisement

‘Sought to Avoid’

“This is a dispute the U.S. sought to avoid,” Speakes said.

The move escalates a growing trade battle between the United States and the European Economic Community, also known as the Common Market. The dispute centers on the entrance earlier this year of Spain and Portugal into the organization.

The European group has various trade regulations that tend to favor farm products grown in Europe.

U.S. officials claim that markets for U.S. grain and soybeans in Spain and Portugal have been lost as a result--and that $1 billion in U.S. sales a year could be affected.

Also included in today’s order are imports of European candy and apple and pear juice.

“We have been assured by the EC that their quotas will have no immediate impact on our trade. As long as that remains the case, our quotas will be similarly non-restrictive.

“However, should the EC’s quantitative restrictions begin to restrict U.S. exports, the U.S. quotas will be adjusted to have a comparable effect or the President may substitute tariff increases for the quotas.

‘Likewise Hit on Them’

“What we are attempting to do is mirror the actions of the EC. When they put a hit on us, we’ll come back and do a likewise hit on them, same dollar impact,” Speakes said.

Advertisement

Asked if the U.S. action could trigger a trade war, he replied, “It should not in this case.”

Speakes added, however, that there was “always a danger of a tit-for-tat in trade” and said that was the reason the United States advocated anti-protectionist measures.

Ella Krucoff, a spokeswoman for the European Community, said the measures had been anticipated, even though the exact products that would be affected had not been known ahead of time.

She said countermeasures by Europe in response to today’s announcement seemed likely.

Measures Against Brazil

Earlier today, the Administration announced it has ordered that retaliatory measures against Brazil be prepared because of its refusal to remove import barriers on U.S. computers and related products.

A directive that the steps be drafted by June 25 for an eventual decision by President Reagan was issued Wednesday by the Cabinet-level Economic Policy Council, which is chaired by Treasury Secretary James A. Baker.

The measures under consideration could include curbs on U.S. imports of Brazilian steel, shoes, aircraft and agricultural products, the officials said.

Advertisement
Advertisement