Home > News > Industry News

Regarding the additional tariffs on China, "4 votes against and 11 abstentions in the EU"

2024-07-18

According to Reuters, people familiar with the matter revealed on the 16th that in a non-binding but still influential vote, EU governments disagreed on the pros and cons of the EU imposing tariffs on electric vehicles imported from China. Reuters said that the large number of abstentions reflected the wavering attitudes of many EU member states.

European Union flag, file picture, picture from US media


The European Commission has imposed a temporary tariff of up to 37.6% on electric vehicles imported from China, and has sought the opinions of EU member states through a so-called "consultative" vote, according to reports. Sources said that 12 EU member states voted in favor of the tariff increase, 4 voted against, and 11 abstained.


Reuters said that the large number of abstentions reflected the wavering attitudes of many EU member states. They knew the European Commission's argument that "trade must be conducted in a fair environment", but also noted the risk of a trade war with China.


Reuters said that sources said that France, Italy, and Spain voted in favor of the tariff increase, while Germany, Finland, and Sweden abstained. An embassy official said that Finland was skeptical about whether it was in the interests of the European Union, given that not all European automakers were in favor of the measure.

According to the report, Swedish Minister of Foreign Trade and Minister of International Development Cooperation Johan Fussell said that the dialogue between the European Commission and China to find a solution would be very important.


According to previous media reports, the European Commission began to impose temporary anti-subsidy duties on electric vehicles imported from China from the 5th of this month. According to reports from multiple foreign media, the EU requires 27 member states to state their positions on this move before the 16th. Italy and Spain agree while Germany, Austria, Sweden, and other countries choose to abstain. Previously, France expressed support and Hungary opposed it. Although this vote is not binding, the current position documents of each member state may affect the conclusion of the European Commission.


According to reports, regarding whether to impose tariffs on Chinese electric vehicles, the Polish Ministry of Development previously stated that the country's position still needs to be negotiated among ministries; Greece had not yet stated its position until the 13th. Reuters quoted a spokesman for the German Ministry of Economy on the 15th as saying: "Germany participated in the discussion during the consultations, but has not yet made a decision, because, from the perspective of the German federal government, it is now crucial to seek a quick and consistent solution with China." Reuters believes that this indicates that Germany abstained from voting.


Although the results of this vote will not be made public, many foreign media believe that Hungary will continue to maintain its position and oppose the imposition of tariffs on Chinese electric vehicles. According to the European version of "Political News Network", Hungarian Minister of Economy Nagy Marton recently stated at an informal meeting of EU internal market and industry ministers that Hungary opposes these tariffs and "protectionism is not a solution."


There are great differences within the EU on whether to impose temporary countervailing duties on Chinese electric vehicles, and many countries are worried that this will have a negative impact on bilateral trade. Austria said: "The dialogue between China and the European Commission must continue, and solutions must be sought to ensure fair competition and prevent the spiral of protectionism." Austrian Federal Minister of Labor and Economics Koch bluntly stated that as an export-oriented country, Austria will suffer heavy losses if it is "retaliated" by relevant measures.


The European Commission previously stated that it would impose temporary countervailing duties on electric vehicles imported from China from the 5th of this month for a maximum period of 4 months. During these 4 months, the additional tariffs must be voted on by EU member states and a final decision must be made. If the additional tariffs are finally passed, the new tax rate will be applicable for 5 years.


If a majority of 15 or more member states, whose populations reach 65% of the total population of the EU, vote against the final vote, the EU will not be able to implement this controversial measure.


Regarding the results of the voting intention, Cui Hongjian, a professor at the Institute of Regional and Global Governance of Beijing Foreign Studies University, told the Global Times that this reflects the huge differences within the EU on the imposition of countervailing duties and the difficulty in reaching a consensus. Zhao Yongsheng, a researcher at the National Institute of International Strategy at the University of International Business and Economics, told the Global Times on the 16th that according to the results of the vote reported by the media, the positions of various countries have not changed much from before. He predicted that at present, it is a big challenge to prevent the EU from officially implementing additional tariffs in four months. On the one hand, China and the EU need to continue to have dialogue; on the other hand, Chinese electric vehicle companies should also be prepared to increase lobbying efforts while looking for other potential markets.


------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


X
We use cookies to offer you a better browsing experience, analyze site traffic and personalize content. By using this site, you agree to our use of cookies. Privacy Policy
Reject Accept