From the EU Commission’s point of view, subsidized electric cars from China are endangering industrial sites across Europe. Will countervailing duties possibly even have to be paid retroactively on imports?
The EU Commission has shown itself to be open in principle to the retroactive application of punitive tariffs on Chinese electric cars. If the legal requirements are met, a possible retroactive imposition will be discussed, said a spokeswoman for the German Press Agency in Brussels. She confirmed that March 7 of this year could be the possible date. Since then, new battery-powered electric vehicles for passenger transport originating from China have had to be registered with customs authorities in the EU.
On July 5, the EU imposed provisional countervailing duties on imports of electric cars from China after an investigation found that the entire value chain in China is heavily subsidized and that this threatens to cause serious damage to industry in the EU. The duties affect, among others, the company BYD, which sponsored the European Football Championship on a large scale.
The final introduction of the punitive tariffs is to take place by November 5, following a pending vote by government representatives of the EU states, unless China makes any surprise concessions. Until then, the tariffs do not have to be paid, only security deposits for them.
Punitive tariffs are viewed critically in Germany
The Commission spokeswoman said on Friday about the current situation: “The EU is continuing consultations with China on the findings and a solution acceptable to both sides.” Both sides have agreed to work together on the basis of facts and in full respect of the rules of the World Trade Organization. However, from the EU Commission’s point of view, any negotiated solution must lead to the elimination of harmful subsidies.
The punitive tariffs are viewed critically, especially in Germany. The main reason is possible Chinese retaliatory measures, which could affect German car manufacturers in particular. However, Brussels currently considers it very unlikely that there will not be a sufficiently large majority among the member states for the final introduction of the punitive tariffs. EU officials recently said that even in German companies, many experienced employees know that the car industry in Europe has little chance of survival without tough action against Chinese subsidy practices. However, public communication in Germany is often determined by managers who are looking for good returns in the short and medium term.
Source: Stern
