EU rebuffs minimum price pledge from China's EV exporters

BRUSSELS — The European Commission said it had received offers from electric vehicle makers in China for minimum import prices in the European Union as a way of avoiding tariffs, but had rejected all of them.

The Commission, which is conducting an anti-subsidy investigation into Chinese-built EVs, said several EV exporters had submitted price pledges — a commitment by an exporter to respect minimum import prices in order to offset subsidies.

"Our review focused on whether the offers would eliminate the injurious effects of subsidies and could be effectively monitored and enforced. The Commission has concluded that none of the offers met these requirements," a Commission spokesperson said.
 

The Commission declined to give details of the offers, but said it had thoroughly reviewed them to see if they met World Trade Organization and EU anti-subsidy rules.

"The Commission remains open to a negotiated solution, but it must fully comply with WTO rules and fully remedy the injurious effects of subsidies identified," the spokesperson said.

EU trade chief Valdis Dombrovskis will meet Chinese Commerce Minister Wang Wentao next Thursday.

The Commission is on the verge of proposing final tariffs of up to 35.3 percent on EVs built in China, on top of the EU's standard 10 percent car import duty.

The proposed final duties will be subject to a vote by the EU's 27 members. They will be implemented by the end of October unless a qualified majority of 15 EU members representing 65 percent of the EU population votes against the levies.