The European Commission and China are ramping up efforts to prevent the imposition of steep import tariffs on China-built electric vehicles (EVs) in the European Union. On Thursday, EU trade chief Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao engaged in a “frank and constructive” discussion to address the issue, according to an EU spokesperson.
The EU is considering tariffs of up to 35.3% on Chinese EVs, in addition to the standard 10% import duty, raising concerns about potential impacts on trade between the two economies. Dombrovskis emphasized that the EU’s anti-subsidy investigation into Chinese electric vehicles is fact-based and aimed at ensuring fair competition and a level playing field within the EV market.
Re-examining Price Undertakings
Both sides agreed to revisit price undertakings, a proposal that involves a commitment by exporters to maintain a minimum price and, in some cases, limit volumes. This option, which had previously been rejected by the EU, is now back on the table as both parties explore alternatives to resolve the trade dispute. Despite these talks, the EU has stated that the investigation into Chinese EV subsidies will continue.
Broader Trade Concerns
Dombrovskis also expressed concerns over China’s ongoing trade investigations into EU imports of brandy, pork, and dairy, which could lead to retaliatory tariffs. He labeled these investigations as “unwarranted” and based on questionable claims, adding another layer of complexity to the ongoing trade dialogue between the EU and China.
Both sides remain committed to finding a mutually agreeable solution that ensures fair competition and compliance with World Trade Organization (WTO) rules.
Source: theglobeandmail.com
