According to Bloomberg, EU Commission Trade and Agriculture spokesperson Olof Gill stated that EU Trade Chief Valdis Dombrovskis and China's Minister of Commerce Wang Wentao held a video call on October 25 to discuss the ongoing negotiations on electric vehicle tariffs between the EU and China. Both sides agreed to continue technical talks in the near future.
China described the video meeting as "frank and constructive." According to a statement from China's Ministry of Commerce, although progress has been made in some areas, significant differences remain on key issues of mutual concern.
The statement noted that China agreed to promptly initiate the next phase of discussions and welcomed a European delegation to visit. Wang Wentao called for further discussions on an electric vehicle export price commitment agreement based on "practicality and balance," hoping to reach a "substantial breakthrough" soon.
The two sides discussed the possibility of a price commitment agreement, a complex mechanism that controls export prices and quantities to replace anti-subsidy tariffs. The EU reiterated that "any solution must comply with WTO rules, sufficiently counteract the impact of Chinese subsidies, and allow for adherence to EU regulatory frameworks."
During the call, the EU Trade Commissioner informed China that under WTO rules, the EU could potentially make separate price commitments with different companies. According to the statement, EU negotiations with the China Chamber of Commerce for Import and Export of Machinery and Electronic Products do not preclude individual agreements with specific exporters.
The EU has been seeking individual pricing agreements with certain automakers. However, China has advised exporters against pursuing separate deals with the EU, as it hopes all manufacturers will adhere to a unified agreement.
Despite eight rounds of negotiations, the EU maintains that "a significant gap" still exists between the two sides. If an agreement is not reached by October 30, electric vehicles manufactured in China will face up to 45% import tariffs in the EU.
In response to the EU's electric vehicle tariffs, China has launched investigations into EU imports of dairy products, pork, and brandy and has raised the possibility of higher tariffs on vehicles with large engines.
