Pedro Sánchez’s decision to ask the EU to reconsider imposing tariffs on electric vehicles manufactured in China has caused unrest in Brussels. Spain’s change of position, which responds to Beijing’s threat to pork exports and the country’s economic interests, weakens the main measure adopted by Ursula von der Leyen in the trade war with the Asian country. The European Commission has decided to impose additional tariffs on electric vehicles manufactured in that country, up from the 10% already applied, going from 36.3% to 9% after an investigation that concluded that Beijing’s subsidies constitute unfair competition and distort the European market.
Dánchez’s request therefore represents a blow to the waterline of this strategy at a time when negotiations in Brussels and Beijing are open. Indeed, a day after the visit of the Spanish president, the Chinese government announced a trip by the Chinese Minister of Commerce, Wang Wentao, to discuss customs tariffs. During this trip, he will meet on September 19 with the economic vice-president of the European Commission, Valdis Dombrovskis.
“The Commission is responsible for EU trade policy,” said the spokesperson on the matter, Olof Gill, in response to questions about Spain’s change of position. “We launched this investigation on the basis of clear evidence. “We have pursued the investigation in all its phases, based on a careful and meticulous collection of evidence and scrupulously following all applicable rules of the World Trade Organization (WTO) and the EU,” he defended.
“We are open to seeking a negotiated solution. “Any such solution must be appropriate and effective to address the risk of harm to European industry that our investigation has identified,” added Gill, who assured that the “offers” arriving from China during this period concerning minimum prices for vehicles manufactured in that country “have been insufficient”.
It is still possible to reach an agreement and they trust the European Commission to ensure that contacts take place at the highest level. But in Brussels, the ball is being left in the court of the Chinese authorities.
Germany welcomes Sanchez’s change
The imposition of new tariffs on Chinese-made vehicles has been temporary since last July, when the European Commission set new rates ranging from 36.3% for companies like SAIC, which did not cooperate in the investigation, to 9% for Tesla, which asked to negotiate individually.
The decision must be definitively approved before the end of October. To reverse the process, a majority would be needed, that is, fifteen member states representing at least 65% of the European population would have to oppose it. Although this figure is still far from being reached, in Brussels it is recognized that the change of Sánchez, who has a significant weight in the EU, complicates the situation. The fear of the community government is that this position will end up dragging more countries down and that the tariffs will end up going off the rails.
For now, Germany, which is the country that has expressed the most reluctance during the process, has welcomed the change of Spain, which in the non-binding vote last July positioned itself in favor of customs duties, as did France and Italy. On the contrary, Berlin abstained. “The direction of travel is the one we share,” said German government spokesman Steffen Hebestreit, according to Bloomberg. Germany, the leader of the European automobile industry, has defended a negotiated solution to the trade dispute over Chinese subsidies for the manufacture of electric cars. Sweden has also shown suspicion about the introduction of new taxes and Hungary voted directly against it.
