The European Union has requested all 27 member states to submit their opinions regarding imposing anti-subsidy tariffs on Chinese electric cars by Monday midnight, July 15th. According to sources from the Italian and Spanish governments, these two countries have expressed their support for the EU’s proposed tariffs.
Reuters reported on Monday, July 15th that whether the EU member states express support or not, is an unofficial stance that is kept confidential but could influence the EU’s final decision. Since July 5th, the EU has imposed temporary anti-subsidy tariffs of up to 37.6% on imported Chinese electric cars, lasting up to four months. This tariff must be approved by a vote from the EU member states within these four months.
The European Commission is seeking opinions from the governments of EU countries in a “consultative” vote, and these opinions are expected to be considered when deciding whether to officially impose tariffs on this highly-watched EU trade case.
Sources stated on Monday that Italy voted in favor, and Spain is also expected to vote in favor in written opinions. Furthermore, France has been one of the strongest supporters of imposing these tariffs.
Sources mentioned last Friday, July 12th, that Germany will abstain from voting because the anti-subsidy investigation is ongoing, and negotiations between the EU and the Chinese government are still in progress. In this preliminary informal stance, abstaining from voting implies support for the EU.
Johan Forssell, the Minister for International Development Cooperation and Trade of Sweden, stated on Monday that Sweden will abstain from voting. Poland indicated that consultations are ongoing within various departments in Warsaw.
Ten years ago, the European Commission did not impose tariffs on Chinese solar panels because a significant number of EU member states did not support it, resulting in the collapse of the EU’s solar panel manufacturing industry due to the impact of cheap Chinese products.
The European Commission will continue its investigation and decide whether to propose clear tariffs applicable for five years.
If the EU indeed proceeds with imposing tariffs, it will require a binding vote among the EU member states. If a specific majority of at least 15 countries representing more than 65% of the EU total population oppose the tariff proposal, it will be blocked.