Germany to Abstain in EU Vote on Levying Tariff on Chinese-Made Electric Vehicles
TapTechNews July 13th news, according to Reuters citing informed sources today, Germany will cast an 'abstention' in the vote to be initiated by EU member states next Monday on levying a temporary tariff on Chinese-made electric vehicles.
It is reported that this vote is the first test of the degree of support for important trade cases in Brussels. The decision to levy a temporary tariff of up to 37.6% on imported electric vehicles from China does not require the support of member states, but among all EU member states (TapTechNews note: 27), if there is a 'sufficient majority' of members voting against it, the proposal may eventually be vetoed - it requires 15 member states representing 65% of the EU's population to express opposition to form an effective majority.
According to sources, the reason why Germany chose to abstain is that the anti-subsidy investigation is still ongoing, and the negotiations between the European Commission and China are also in progress. Germany will be in line with the European Commission in the spirit of 'critical unity'.
France is one of the firmest supporters of this case, while Hungary is opposed. Other member states are wavering in their voting decisions. German Chancellor Olaf Scholz said on Friday local time that Germany hopes the EU executive body can successfully reach an agreement with China on issues related to electric vehicles, which will be beneficial to the European automotive industry. But he refused to disclose what vote the country will cast. 'These are vehicles with global competitiveness, there is no need to fear competition, but we must always ensure that the conditions are fair on all sides.'
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'German Association of the Automotive Industry: Levying a tariff on Chinese new energy vehicles cannot change the current situation of the weak competitiveness of the European automotive industry.'
'Germany, Hungary and other European countries oppose the EU's proposed tariff increase on Chinese electric vehicles: should support trade liberalization.'
'On the eve of the resolution taking effect, the German Association of the Automotive Industry urges the EU to abandon the tariff collection on Chinese electric vehicles.'