EU Lowers Limit on Japanese Car Imports as European Demand Dips.

The European Union said it has lowered its 1999 limit on Japanese car imports because of declining European demand.

EU and Japanese officials lowered the ceil-ing so Japanese automakers can export 1.184 million cars to the EU compared with 1.19 million autos last year. Japan exported

The ceilings, based on demand, are part of a 1991 agreement to limit exports of Japanese vehicles because of fears rising Japanese exports were threatening the European industry. That agreement will end in 2000 under World Trade Organi-zation rules prohibiting import barriers.

Japanese automakers haven't reached the agreed export limits since they came into effect, said Jochen Kubosch, a spokesman for the commission, the EU's executive arm.

Japanese carmakers' presence in Europe has increased in the last year as they build new plants or expand existing facilities; for example, Toyota Motor Corp. is building a 4 billion French-franc ($727 million) plant in France.

Though the 1.184 million-car limit on Japanese vehicle exports for this year ap-plies to all 15 EU countries, five have individual limits. Japan agreed in 1991 to put additional limits on exports to the U.K., Spain, Portugal, France and Italy until the end of this year to give those countries time to phase out strict import restrictions.

Japan is allowed to export 83,700 cars to Spain this year, compared with last year's 70,000-auto limit. It can export 190,000 cars to the U.K., unchanged from last year, and 47,000 autos to Portugal, up from 43,000 autos last year. Exports to France will be limited to 100,000 cars, down from 111,100 last year, while Japan can export 117,300 cars to Italy, up from 107,000 cars.