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EU says it could continue China EV talks even after tariffs
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EU says it could continue China EV talks even after tariffs
Sep 30, 2024 9:10 AM

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.

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