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EU members give divided view on Chinese EV tariffs, sources say
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EU members give divided view on Chinese EV tariffs, sources say
Jul 16, 2024 10:11 AM

BRUSSELS, July 16 (Reuters) - European Union governments

have given a divided view on the merits of EU tariffs on imports

of China-built electric vehicles (EVs) in a non-binding but

still influential vote, sources with knowledge of the vote said

on Tuesday.

The European Commission, which oversees the bloc's trade

policy, has set provisional duties of up to 37.6% on EVs

imported from China and has canvassed EU member views in a

so-called advisory vote.

A dozen EU members voted in support of the tariffs, four

voted against and 11 abstained, the sources said.

The Commission is expected to take this into account when

deciding whether to follow up with definitive duties in what is

the EU's highest profile trade case yet.

France, Italy and Spain voted in favour, while Germany,

Finland and Sweden abstained, government sources said.

A German source said that its abstention was in the spirit

of "critical solidarity" with the Commission. Finland had doubts

whether it was in the EU's interests, given that not all

European car manufacturers favoured measures, an embassy

official said.

Swedish trade minister Johan Forssell said that dialogue

between the Commission and China to find a solution would be

very important. Beijing has threatened wide-ranging retaliation.

The Commission will continue its investigation for another

three months and determine whether to propose definitive duties

that would typically apply for five years.

If it does push for tariffs, they will come up for a binding

vote among the EU members and would be blocked if a qualified

majority of 15 member countries representing 65% of the EU

population vote against.

In one sign of compromise, the European Commission has

signalled that it may consider a lower tariff for BMW's

China-made electric Mini and Volkswagen's

Cupra Tavascan, two sources with knowledge of the matter said.

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