European governments were unable to add this Friday a sufficient majority neither for nor against tariffs on electric cars imported from Chinawhich gives back to the European Commission the power to adopt in the coming days the final decision which makes permanent the tariffs that the EU has provisionally imposed since last July.
In the vote, only five countries voted against Brussels’ proposal to make the levies permanent, including Germany, which fears the consequences of a trade war with Beijing. Furthermore, as various diplomatic sources informed Europa Press, Spain and eleven other countries abstained; while ten others voted in favor. To block Brussels’ decision to implement this tax, a bloc of at least 15 member states representing 65% of the population was needed.
Experts from the Twenty-Seven met in Brussels to put to the vote the formal proposal of the Community Executive to consolidate the provisional tariffs, on which Community rules require a decision to be taken as to their permanent nature before October 30 . At the end of the vote, the Community Executive indicated that the result means that it obtained “the necessary support” from States member for the adoption of tariffs for a period of five years.
In its statement, the Commission also made it clear that “in parallel” Brussels and Beijing “They continue to work hard” For look for solutions “alternative” and compatible with the fair competition rules of the World Trade Organization (WTO), that is to say putting an end to Beijing’s illegal subsidies to Chinese manufacturers with a “supervised and feasible” decision.
Since last July, Brussels has applied customs duties of up to 38.1% on battery electric cars imported from China in response to the damage caused to its European competitors by the illegal subsidies that the Chinese government grants to its manufacturers. This tax is in addition to the 10% that the EU already applies to vehicle imports.
However, the economic vice-president of the community executive, Valdis Dombrovskis, who speaks on behalf of the EU on trade matters, insisted that keep the dialogue open with Chinese authorities looking for a solution, notably last week during a meeting in Brussels with the Asian giant’s Minister of Commerce, Wang Wentao.
During the meeting, Dombrovskis defended that Community Services conducted an investigation based “strictly on facts and evidence” which allowed the imposition of temporary tariffs to compensate for illegal subsidies and guarantee “fair competition” on the internal market and that all producers compete on an equal footing. He also demanded that Beijing close “unjustified” investigations it opened against European Union products like brandy, pork and dairy in retaliation for the tax on electric cars exported by that country.
The spokesperson for Commerce in Brussels, Olof Gill, insisted this Friday after the Twenty-Seven vote on the fact that negotiations “are underway” and that the Commission “remains open to finding a solution” with Beijing in parallel with the procedure for formal adoption of tariffs by October 30. The levies, even if they are final, recall community sources, can be suspended or withdrawn at any time if there is an agreement that resolves the irregularities.
