China appeals to the World Trade Organization (WTO) over EU tariffs on e-cars
Since last month, the EU has been imposing provisional tariffs on e-cars from China. Does Beijing have a chance of having the measures stopped by the WTO?
China's car industry is currently experiencing a bumpy ride, partly due to European tariffs. The picture shows a Fang Cheng Bao 5 from BYD.
(Image: BYD)
The dispute over the EU's provisional tariffs on electric cars from China is entering the next round. As announced by the Ministry of Commerce in Beijing, China is taking the matter to the dispute settlement body of the World Trade Organization (WTO). The ministry cites the protection of the rights and interests of the domestic e-car industry as the reason.
The EU's provisional decision lacks a factual and legal basis. It violates WTO rules and undermines global cooperation and the handling of climate change. Beijing is calling on the EU to immediately correct its misconduct and jointly safeguard economic and trade cooperation as well as the stability of the supply chain in the e-car industry, a spokesperson said in a statement.
Mechanism broken
Cases before the WTO Dispute Settlement Body often drag on for years. Those involved can theoretically appeal against rulings, but the mechanism has not worked for years because the USA has prevented the appointment of new experts. They want to build up pressure for greater reforms in the WTO.
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Since the beginning of July, security deposits have been required for electric cars from China. The EU Commission wants to clarify with the EU states in the coming months whether the duties will actually be due. After months of investigation, Brussels came to the conclusion that e-cars are unfairly subsidized in China and that imports from the country endanger the industry in the EU. The surcharges against various manufacturers range up to 37.6 percent.
(fpi)