Tariffs on electric vehicles imported from China divide the EU. The statements of the Prime Minister, Pedro Sánchez, during his visit to Beijing have caused a stir in Brussels. It is not that Sánchez’s change of position calling for “reconsidering” the imposition of tariffs on green car batteries imported from the Asian giant has been very well received, despite his intention to persuade reciprocal practices on the Spanish pork sector. Such statements have generated unrest in the community capitalwho is responsible for EU trade relations.
“The European Commission is responsible for EU trade policy” Community spokesman Olof Gill said this at a press conference after being asked about the Prime Minister’s position. While the bloc was open to seeking a “negotiated solution”, it must be an “adequate” response to the risk of harm posed to European industry by the practices identified in the investigation, he added.
“It is not up to me or the European Commission to prescribe what this solution might look like. That depends on the other side. We are open to negotiation,” Gill said. In doing so, he is placing the onus on the Chinese authorities to find a meeting point. For now, the European Commission’s Vice-President for Trade, Valdis Dombrovskis will meet with Chinese Commerce Minister Wang Wentao, September 19 to settle these additional charges.
“We launched this investigation on the basis of clear evidence. We have pursued the investigation, at every stage, on the basis of a careful and meticulous collection of evidence and following carefully the applicable rules of the World Trade Organization (WTO) and the European rules,” said the spokesperson for the European Commission in charge of trade.
Trade relations between the EU and China have not only strained ties with the Asian giant, but within the bloc, countries most exposed to Beijing are urging caution. This is also the case in Germany, whose chancellor, Olaf Scholz has asked Brussels to reconsider imposing customs duties in addition to imports of Chinese electric vehicles. And its powerful auto industry is already suffering from these temporary tariffs.
The EU’s decision on Beijing must be coordinated among the twenty-seven member states, something that European Commission President Ursula von der Leyen has made clear in recent months. The decisive test will come, in any case, at the end of the month. When will we know how many countries support the measure and whether, as a result, Brussels is able to move it forward?
The European Commission has launched an investigation into imports of Chinese electric vehicle batteries into the EU in believe they have benefited from subsidies from the Beijing executive which represent a violation of competition rules and give their companies the opportunity to sell their products at lower prices, incurred in practices of dumping.
After concluding the investigation, Brussels proposed provisional customs duties of up to 36% on imports of these products from the Asian market. A figure that is in any case far from the 100% customs tariffs set by the United States or Canada and which can reach 70% in the case of India. The measure generates a division in the community bloc with Germany or Sweden as the main opponents.
The dialogue between the Chinese and European authorities continues, in a negotiation in which both parties are trying to find a solution that does not lead to greater tension in trade relations. The truth is that Beijing’s reception of the tariffs has not been exactly positive. If Brussels accuses China of apply “unfair” subsidies and to give its companies a competitive advantage, the Asian giant has called European tariffs “protectionist” and a “witch hunt.” Beijing has launched investigations into pork and dairy products imported from the EU for the same reasons.
