BRUSSELS, Sept 30 (Reuters) - The European Commission is
willing to continue negotiating with China a potential deal to
avert tariffs on Chinese electric vehicles even after such
tariffs are imposed, a senior EU official said on Monday.
The Commission, which is conducting an anti-subsidy
investigation into EVs made in China, has sent its proposal for
final tariffs on such vehicles to the EU's 27 members advocating
levels that it calculated in September, three sources familiar
with the matter said. It has set the vote for Friday.
At the same time, it included an additional text called a
recital stating that talks so far with China had not resolved
the dispute over alleged Chinese subsidies, but that
negotiations on a possible compromise could continue even if EU
countries agree to the tariff rates.
The Commission has said it could re-examine a price
undertaking - involving a minimum import price and typically a
volume cap - having previously rejected those offered by Chinese
companies.
Commission director-general in charge of trade defence
Martin Lucas told the European Parliament on Monday that
technical talks with China had intensified to an almost daily
basis and could extend beyond the end of October.
"The conclusion of the investigation is not necessarily the
end of consultations with China on finding a solution. The
investigation has its own legal deadlines and we cannot miss
them. Definite measures need to be in place by Oct. 31," Lucas
said.
"Price undertakings or any other solutions can still be
accepted after that date," he added.
Chinese automakers had submitted revised offers that were
still not acceptable, he continued, although some progress has
since been made.
The proposed tariffs vary from 7.8% for Tesla EVs
built in China to 35.3% for those of SAIC and other
companies deemed not to have cooperated with the Commission's
investigation. They are on top of the EU's standard 10% car
import duty.
EU members are due to vote on Friday on whether to back
final or "definitive" tariffs for the next five years. They
would be imposed unless a qualified majority of 15 EU countries
representing 65% of the EU's population voted against.
A decision, which may require a second round of voting, has
to be taken by Oct. 30.
If definitive tariffs are imposed, it would mean that
provisional duties dating back to July would also have to be
paid. Until the end of the EU investigation, companies can cover
these with a bank guarantee.