Posted on 07 Aug 2024
EU nations are set to back the proposed tariffs on Chinese battery electric vehicles (BEVs), according to Valdis Dombrovskis, the European commissioner for trade.
“It’s clear that member states realise the need to protect the EU’s car industry because this risk of injury is there,” he told the Financial Times. “Chinese battery electric vehicle market share is growing very rapidly. That subsidisation is there.”
The European Commission (EC) in June announced provisional tariffs of up to 38.1% on battery electric cars made in China. This was on top of the existing 10% duty already imposed on Chinese BEVs. The move follows an investigation that found “unfair subsidisation.”
Since the provisional duties entered into force on 5 July, the EC has four months to reach its definitive findings in the investigation. EU members are expected to vote on permanent tariff proposals in late October, which will come into force in November.
Germany has voiced criticism against the new tariffs but reportedly abstained in July in an advisory poll in which only four member states voted against the tariffs. The non-binding vote last month also saw nine countries abstaining and 11 supporting the tariffs. Votes from 15 countries representing 65% of the EU’s population are required to block the proposed measure.
On Monday, an EC spokesperson told Kallanish Power Materials how the member states vote cannot be foreseen.
“The EU continues consultations with China on findings and on a mutually acceptable solution,” the spokesperson adds. “The two sides agreed to engage on the basis of facts and in full respect of WTO (World Trade Organisation) rules. Any negotiated outcome must be effective in addressing the injurious subsidisation that has been identified in the context of the investigation.”
The spokesperson reiterates that the provisional measures follow a “facts-based investigation” and are a “measured response taken in accordance with agreed international rules.”
When queried on retaliation risks, the spokesperson says: “China and Chinese companies enjoy their fully respected procedural rights to participate in the investigation – Chinese exporters have standing before the EU Courts and the Chinese government can request a dispute settlement at the WTO without needing to resort to retaliation. Therefore, any ‘retaliation’ against a measured and rules-based action would be completely unwarranted.”
The EC says it is “vigilant” regarding any threats potentially turning into “specific actions against our car manufacturers, any segment of their supply chains in a move possibly triggered by the investigation, or any other European economic interest.”
Source:Kallanish Power Materials
