EU Seeks Viable Agreement on Customs Duties for China's Electric Vehicle Prices

In response to the European Union's recent increase in customs duties on Chinese-made electric vehicles (EVs), discussions are ongoing to establish a minimum price agreement that would have a similar weight and applicability to new import tariffs. The EU's potential trade commissioner, Maros Sefcovic, emphasized the importance of such an agreement in a speech to a parliamentary committee today.

Last Wednesday, the EU imposed customs duties of up to 45.3% on electric vehicles from China. Despite this significant step, negotiations continue to reach a resolution through price commitments. These commitments could potentially mitigate the need for such high customs duties by setting minimum price targets for imported vehicles.

Sefcovic, one of the 26 commissioners nominated by European Commission President Ursula von der Leyen participating in sessions at the European Parliament, indicated that EU trade officials are currently in China negotiating the terms. "What is very important for us is that even if you go for (price commitments), they need to be as effective and applicable as the import duties we are implementing. So this is absolutely very important for us," he stated.

The proposed commissioner has served the EU in various roles since 2009 and hails from Slovakia. The new Commission, of which he could be a part, awaits approval from the European Parliament before commencing its activities.

These negotiations represent a critical step as the EU seeks to protect its developing EV market from what it perceives as unfair competition. The outcome of these discussions could have significant implications for the trade relationship between the EU and China, particularly within the automotive sector.