The EU’s decision to permanently impose customs duties on electric vehicles manufactured in China is already sparking a reaction: Beijing will tax the import of European brandy. This is the first measure adopted by the Chinese government after last Friday the 27 gave carte blanche to the European Commission to increase tariffs on electric cars produced in the Asian giant by up to 36%, after an investigation which concluded that the subsidies were causing overproduction in this country which is harming the European market with unfair competition practices.
The imposition of provisional anti-dumping measures remained in force to wait for this summer, after China launched an investigation into the importation of this type of alcohol, as well as dairy and pork products (the latter sector would particularly affect Spain, which is one of the main exporters). Now, importers of this alcohol will have to submit security deposits to Chinese customs from October 11.
Waiting for the answer for the pig
From Wednesday, China will apply margins of between 30.6% and 39% to a series of European brandy brands, including Spain’s Bodegas Osborne and Miguel Torres, to which it will apply 34.8%, according to Europa Press.
Along the same lines, China is “studying” the imposition of customs duties on large-displacement fuel vehicles it imports from the EU to “firmly protect the legitimate rights and interests of its industries and enterprises” , as announced by the Ministry of Commerce. A ministry spokesperson said in a statement that Beijing is carrying out investigations to “fully protect the rights of all interested parties,” reports Agencia EFE. These investigations relate in particular to dairy products and meat: “We will make an objective and fair decision based on the results of the investigations on pork and dairy products in the European Union. »
The European Commission will denounce this decision by the Chinese government before the World Trade Organization (WTO). “We believe that these measures lack basis and we are determined to defend European industry against the abuse of trade defense instruments,” declared the Community government’s trade spokesperson, Olof Gill.
The EU denounces “retaliations”
Economy Commissioner Paolo Gentiloni has defended the tariffs the EU will apply to electric vehicles as a “very proportionate decision”. “There is no reason to react to this decision with reprisals,” he declared during a press conference after the meeting with EU finance ministers (Ecofin) .
With great division, the EU gave in to imposing new tariffs on Chinese-made electric cars, which were revised downward throughout the process. They will reach 35.3% (SAIC and companies which did not collaborate in the survey). Other manufacturers benefiting from subsidies, such as Geely or BYD, will benefit from surcharges of 18.8% and 17% respectively. Customs duties also affect imports from Western manufacturers that produce in China, such as Telsa (7.8%), Dacio or BMW. Companies that collaborated in the investigation will be taxed at 20.7%.
Ten countries were in favor of an increase in customs duties, five rejected them, but the majority (twelve) abstained. To bring down customs tariffs, a qualified majority was needed (at least 15 countries representing 65% of the European population). Spain was one of the countries that voted blank under the pretext of avoiding a trade war. This Tuesday, the Minister of Economy, Carlos Body, reiterated the need to avoid an “escalation” in this type of measures, defended the need to continue negotiations and asked China for “this same predisposition”.
The community government has always maintained that it is open to negotiation with the Chinese government and that even the decision on customs tariffs, which will in principle be in force for five years, can be canceled at any time in the event of an agreement. What Brussels was seeking by speeding up the vote (for which it had until October 30) was precisely to put pressure on China, which until now has not made any offers acceptable to the European side.
