VDA President Hildegard Müller on EU countervailing duties

"It is a correct signal from the Federal Government, which – in the interests of the economy, prosperity and growth – has stood behind the interests of the European and German automotive industry and its employees on such an important issue and voted No in the EU decision today.

We need global trade. European prosperity is based to a large extent on international exchange and global demand for our products. This has been one of Europe's strengths for decades.

The vote of the EU member states not to reject the EU Commission's plan with a sufficient majority, thus imposing high additional tariffs of up to 35.3 % on e-cars from China from the end of October, is a further step away from global cooperation.The investigation has undoubtedly shown that there is a need for negotiations with China. These negotiations must now continue to prevent escalation, ideally avert the tariffs so that we do not risk a trade conflict. Extending the negotiations is still an option - the VDA has also proposed this to all parties involved. A trade conflict would be a loss for all stakeholders. Especially in times of increasing protectionism around the world, Germany, together with Europe, must be a strong voice and a determined advocate for global trade.

There is no doubt that China is called upon to guarantee fair world trade and not to react with countermeasures. The anti-subsidy report has clearly shown that the extent and nature of state support in China is a challenge. However, the intended tariffs not only increase the risk of a mutual trade conflict, but would also make vehicles significantly more expensive for consumers. The potential damage that could result from countervailing tariffs is therefore greater than the possible benefit of the instrument. Increasing market isolation is not an option for the European - and especially the German - automotive industry.

The result of the investigation is also not convincing with regard to the announced countervailing duties: German and European manufacturers who export from China to the EU are burdened with higher duties than individual competitors from China and the USA. This is also simply incomprehensible and not very effective.

Basically, the German automotive industry is committed to free and fair trade. The results of the anti-subsidy investigation show that the extent and nature of state support in China are a challenge. Solutions must be found in constructive discussions. Both sides, China and the EU, must approach each other. This opportunity to avert additional tariffs with a jointly found solution still exists and must be used with all strength and determination by all sides.

We strongly appeal to make the European-Chinese negotiations a success in this sense. The German government must play a strong role in this. The fact that the decision was not unanimous shows that Berlin does not stand alone in this position."