It was far from certain for free trade advocate Benjamin Dousa (M) to contribute to the EU's tariffs on Chinese electric cars. The deadline was only hours away when the message finally came: Sweden abstained and the yes-side won.
From my perspective, voting no was also on the table, says Benjamin Dousa (M), Minister for International Development Cooperation and Trade.
It was actually about one thing, and that is that we received positive signals from the Commission that they will start negotiating a special solution for Volvo Cars.
So it was decisive?
Absolute.
Unfair advantages
There are no promises, but negotiations are underway for an exemption for Volvo Cars, which involves the company promising a certain price for certain electric car models and in return avoids EU fees.
The reason for the tariffs is that the EU believes that China, by pumping in state subsidies into electric car production, is dumping prices and creating unfair advantages against European production.
The tariffs mean up to 35.3 percent on imports of electric cars made in China, from November this year – in addition to the already existing tariffs of ten percent. China has responded with threats of tariffs on European export goods.
"Bad for Sweden"
Actually, Dousa would like to see China and the EU Commission agree on a more permanent solution to the issue so that the tariffs can be abolished.
It's bad for Sweden with more friction in the trade system.
Are you worried about a trade war and China responding with tariffs on European export goods?
Definitely. The more tariffs, the more trade barriers we get. It's bad for Europe and it's bad for Sweden.
The EU Commission believes that the Chinese state provides state aid to its electric car manufacturers, giving them unfair advantages over European manufacturers. China has protested and hinted that the response could be heavy tariffs on cognac, dairy products, and pork from the EU.
According to the latest proposal, the tariff will be 18.8 percent for Volvo owner Geely, 17 percent for BYD, 35.3 percent for SAIC, 7.8 percent for Tesla, and 20.7 percent or 35.3 percent for other brands – depending on whether they have been cooperative or not.
The tariffs can come into force from the beginning of October/November.
Both Canada and the US have recently introduced tariffs of 100 percent on electric cars from China.
