China and Europe Near Agreement on Electric Car Pricing

Brussels and Beijing are close to reaching a solution regarding the tariffs imposed by the European Commission on electric vehicles from China, according to the President of the European Parliament's Trade Committee, as reported by a German media outlet.

"We are close to an agreement: China might commit to offering electric cars in the EU at a minimum price," stated Bernd Lange to N-TV, without providing further details. "This would eliminate the competition distortion caused by state subsidies, which was the original reason for the introduction of the tariffs."

Last month, the European Union decided to increase tariffs on electric vehicles manufactured in China to as much as 45.3% in the most severe cases. This measure has divided Europe and prompted retaliatory actions from Beijing, which launched anti-dumping investigations against the French wine and Spanish pork industries, both highly regarded in China's elite circles.

The tariffs, which came into effect on October 30, were imposed to counter what is considered unfair subsidies, including preferential financing, grants, and access to land, batteries, and raw materials below market prices.

Despite the implementation of the tariffs, both parties have continued negotiations to find a solution, raising hopes of avoiding a trade conflict, especially among German car manufacturers who heavily rely on the Chinese market.

The China Chamber of Commerce to the EU expressed "deep disappointment at the EU's protective and arbitrary measure."

Today, the European Commission formally requested consultations at the World Trade Organization (WTO) regarding the provisional anti-dumping measures imposed by China on EU brandy imports, primarily represented by French cognac.

This action reflects the EU's firm stance that China's provisional measures on European brandy do not comply with WTO rules. According to the EU, "China has not demonstrated that there is a threat of harm to its brandy industry or that there is a causal link between the alleged threat and brandy imports from Europe."

"Furthermore," they argue, "China initiated the case with insufficient evidence, contrary to WTO legal standards."

This request is the first step in activating the WTO's dispute resolution procedures. China now has 10 days to respond to Brussels' request, aiming to find a mutually convenient format and date for consultations. If a satisfactory solution is not reached, a WTO panel could be requested to decide the case.

According to the Commission's Trade Commissioner, Valdis Dombrovskis, "The EU takes very seriously any unfair or questionable use of trade defence instruments against any sector of its economy. By requesting consultations with China over its provisional anti-dumping measures on European brandy, the Commission is fulfilling its commitment to protect its industry from unfounded accusations and the misuse of trade defence measures."