Ursula von der Leyen’s Atlanticist policies continue towards a trade war against China, which will kick off with the introduction of trade tariffs on EU imports of electric vehicles, and the possible impact on European agri-food exports.
1) EU duties on Chinese electric car imports
On 4 October 2023, the European Commission opened an investigation into China’s state aid to its electric vehicle industry. (1)
On 12 June 2024, the Brussels executive announced additional duties on electric vehicles arriving from China:
– up to 38.1%, in addition to the already existing duties (10-15%), as of 4 July 2024. (2)
2) China, possible retaliation on European agribusiness
China has first of all warned that any new tariffs on imports into the EU will trigger a rapid response, with ‘retaliatory measures’ that will inevitably also affect the European agri-food sector.
The first European agricultural and food products mentioned by the Beijing government are dairy products, pork and their derivatives. Indeed, the Chinese government will launch an anti-dumping investigation into these categories of goods, which accounted for a quarter of EU agri-food exports (as well as 2% of total exports) to the Celestial Empire in 2023. (3)
European exports of alcoholic beverages to China, starting with cognac (French brandy) may also be burdened with new duties, in response to those the EU is about to introduce on Chinese electric vehicles.
3) European farmers, yet another loss
The outgoing Commissioner for Agriculture and Rural Development, Janusz Wojciechowski, has repeatedly called for the agri-food sector to be sheltered from the trade disputes in question. The damage to EU farmers and the agri-food industry was, moreover, well foreseeable.
The sector representatives in turn complained politely:
– ‘the Chinese market is crucial for the European pig sector. One of the reasons is the size of China, as the volume of the Chinese market is so large that no one can ignore it‘ (Joris Coenen, Belgian Meat Office, Director);
– ‘the Commission has to make sure that we do not get caught up in this controversy. We don’t like to get caught in the crossfire‘ (Ksenija Simovic, Copa-Cogeca, Trade Policy Advisor).
4) Concluding remarks
The trade battle against China was announced in May 2024 by the US, where a colossal duty (100 per cent) has already been introduced on imports of electric vehicles from China.
The 2024 European elections also confirmed the support for the bellicose, Russophobic and Sinophobic policies of which Ursula von der Leyen is a protagonist, with tragic effects on our economy.
European agribusiness thus remains squeezed between:
- the energy crisis and dependence on the USA for the supply of shale gas, whose economic (as well as environmental) costs have already paralysed industrial development
- the speculations of global monopolists on which the supply of agricultural inputs (seeds, pesticides, fertilisers) and the commodities market depend (4)
- unfair trade practices and sales below cost imposed by industrial and retail (physical and electronic) giants (5)
- unfair competition from agricultural and food products arriving from third countries without tariff quotas or reciprocity clauses, (6) and finally
- the progressive closure of international markets with the highest growth potential and catchment areas (BRICS).
#PeaceLandDignity
Dario Dongo
Note
(1) EPRS (European Parliament Research Service). EU anti-subsidy probe into electric vehicle imports from China. October 2023 https://tinyurl.com/ytk8wsyh
(2) Koen Verhelst, Antonia Zimmerman, Jürgen Klöckner. EU shocks China with EV duties of up to 38 percent. Politico EU. 12.6.24 https://tinyurl.com/mtb3pu4m
(3) Chu Daye, Tao Mingyang. European Commission’s tariff decision met with wide criticism. Global Times. 13.6.24 https://tinyurl.com/y32fbn6m
(4) Dario Dongo. The tentacles of finance on food sovereignty and our food. FT (Food Times). 31.3.24
(5) See paragraph 3 in the previous article by Dario Dongo. Sales below costs, farmers protest in France. FT (Food Times). 21.1.24
(6) Dario Dongo. Agriculture, stop unconditional free trade agreements. FT (Food Times). 2.5.24
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.
