BRUSSELS: Euro­pean Union governments exposed divided views on the merits of EU tariffs on imports of China-built electric vehicles (EVs) in a non-binding but still influential vote, sources with knowledge of the vote said on Tuesday.

The European Commission, which oversees the bloc’s trade policy, has set provisional duties of up to 37.6 per cent on EVs imported from China to counter what it says are unfair subsidies and has canvassed EU member views in a so-called advisory vote.

A dozen EU members voted in support of the tariffs, four voted against and 11 abstained, the sources said.

The commission is expected to take this into account when deciding whether to follow up with definitive duties in what is the EU’s highest-profile trade case yet.

If it does advocate duties at the end of its investigation, it will come up for a binding vote among the EU members and would be imposed unless a qualified majority of 15 member countries representing 65pc of the EU population vote against.

If the voting pattern of the advisory vote were repeated, definitive duties, typically applicable for five years, would then enter force.

However, the large number of abstentions reflects wavering among many EU members, aware of the commission’s arguments that trade must be on a level playing field, but also mindful of the risk of a trade war with China. Beijing has threatened wide-ranging retaliation.

German carmakers, which made a third of their sales last year in China, have urged the EU to drop tariffs, which would not only apply to Chinese producers such as BYD, Geely and SAIC, but also to China-built cars of Western automakers such as Tesla and BMW.

Published in Dawn, July 17th, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

System failure
Updated 12 Nov, 2024

System failure

Relevant institutions often treat right to internet connectivity with the same disdain as they do civil and political rights.
Narrowing the gap
12 Nov, 2024

Narrowing the gap

PERHAPS a pat on the back is in order for the ECP. Together with Nadra, it has made visible efforts to reduce...
Back on their feet
12 Nov, 2024

Back on their feet

A STIRRING comeback in the series has ended Pakistan’s 22-year wait for victory against world champions Australia....
Time to deliver
Updated 11 Nov, 2024

Time to deliver

Pakistan must display a serious commitment to climate change adaptation and mitigation at home.
Smaller government
11 Nov, 2024

Smaller government

THE IMF bailout programme has put the government under pressure to curtail its spending, especially current...
Unsafe inheritance
11 Nov, 2024

Unsafe inheritance

DESPITE regulations, the troubling practice of robbing women of their rightful inheritance — the culprits are ...