Berlin (EuroEFE).- The French president, Emmanuel Macron, distanced himself this Wednesday from the German chancellor, Olaf Scholz, by defending the European Commission’s proposal to impose tariffs on electric vehicles from China, an initiative that the Government opposes. German and that the community countries will vote on Friday.
«When you act in the same market with people who compete with you with such a level of subsidies that they make the market unbalanced for your companies, you have to correct it. That is why I support the European Commission’s initiative on China’s electric vehicles,” Macron said at the second Global Dialogue in Berlin, hours after meeting Scholz.
After their meeting at the German Chancellery, in which both discussed bilateral and European issues, in addition to the wars in the Middle East and Ukraine, it was clear that both leaders failed to bring together their divergent positions on two important trade issues: tariffs on China and the free trade agreement between the European Union (EU) and the Mercosur countries.
Macron said that Europe needs to adapt to a world in which large economies, such as the United States and China, also protect their industries.
«25 years ago we thought that China would respect the rules of the World Trade Organization (WTO), this is not the case, and in 2022, the United States decided not to comply with the WTO with its inflation legislation. When the United States and China don’t play by the rules, we shouldn’t be the only ones who do it.”he stated.
“I am not inviting you to be protectionist, the protectionist world is ugly, but at least we should be fair to our industries, to our farmers and our people, which means preserving the balance” of the markets, Macron added.
In another forum, Scholz insisted on the need to continue negotiations with China on electric vehicles to avoid increasing tariffs.
«Ditches are dug and walls are built everywhere. The objective is to counteract the risks – and, ultimately, foreign competition – by increasingly narrowing the circle of trading partners,” he noted.
«Of course, we have to protect our economy from unfair trade practices. We have to insist on equal conditions. There are disputes, even long-term ones, but our reaction as the EU should not lead us to harm ourselves,” the German president stressed.
We must protect our economy from unfair trade practices and insist on a level playing field. Negotiations with China on electric vehicles must continue. And the EU must tackle where cheap Chinese imports are actually harming our economy.
— Federal Chancellor Olaf Scholz (@Federal Chancellor) October 2, 2024
Germany, whose economy relies heavily on exports, wants to avoid more tariffs on electric carsas it is one of the main suppliers of components for Chinese vehicles.
In addition, he fears that the retaliation that the Asian giant has promised will affect other sectors.
Both Macron and Scholz made the assessments as EU member states prepare to vote on Friday on whether to impose higher tariffs. to imports of Chinese electric vehicles for considering them illegally subsidized.
After nine months of investigation, the European Commission recommended that the EU increase tariffs on Chinese electric vehicles.
Depending on the level of public subsidies that the different brands have received from Beijing, the EC recommends pricing BYD at 7.4%, Geely at 20% and SAIC at 38.1%. Likewise, Western brands that produce in China (Telsa, Dacio or BMW) would be taxed at 21%.
The two leaders They also have different opinions about the free trade agreement with Mercosur.which supports an enthusiastic Scholz and blocks a critical Macron.
This same Thursday, before meeting with the French president, the head of the German Government described “unacceptable” that in the current geopolitical situation the EU is not closing new free trade agreements.
“That is why we expect the Commission and also the other Member States to agree and we can move forward once and for all,” he said.
Editing by Sandra Municio
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