Written by Cláudio Afonso | LinkedIn | X
The European Union and China are close to reaching an agreement to eliminate tariffs on Chinese electric vehicle (EV) imports to Europe, Bernd Lange, chair of the European Parliament’s Committee on International Trade, said on Friday.
According to the official, both parties will agree on a minimum price for China-made EVs in Europe.”We are continuing negotiations with the Chinese side on electric vehicles. We are close to a decision with China to cancel the duties. We are close to an agreement: China can commit to offering electric vehicles in the EU at least at the minimum price, Lange told German broadcaster N-TV.
“This would solve the problem of distorting competition through unfair subsidies, which is why duties were initially introduced,” he added.
Last month, Brussels rejected a Chinese proposal to set a minimum price of €30,000 ($31,240) for all the China-made EVs sold in Europe.
On October 30, the European Commission started applying additional tariffs of up to 35.3% on Chinese EV imports, citing unfair subsidies that allow Chinese manufacturers to undercut European competitors.
The extra duties tariffs range from 7.8% on Tesla vehicles to up to 35.3% on vehicles from SAIC Group’s MG brand.
Earlier this month, EU and Chinese officials held five rounds of consultations in Beijing to explore alternatives to the anti-subsidy duties. Lange’s remarks suggest progress has been made in finding a compromise.
The talks follow China’s recent appeal to the World Trade Organization (WTO) against the European Union’s decision to impose countervailing measures on Chinese electric vehicles.
The tariffs, resulting from an investigation initiated by the European Commission last year, add to the 10% standard import duty.
China’s Ministry of Commerce has recently urged the EU to “immediately correct its illegal practices” and to work toward stabilizing the EV industrial and supply chains, as well as overall China-EU economic and trade cooperation
Written by Cláudio Afonso | LinkedIn | X
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