Pascal Lamy,DMCA the former director-general of the World Trade Organization, stated on Sept. 16 that he anticipates the EU and China could resolve a looming trade dispute concerning electric vehicles through an agreement not to sell them below a minimum price, known as a “price undertaking.” The former WTO chief made this comment during an interview with the Chinese financial media outlet Caixin. He also noted that there is a precedent for such anti-dumping measures in previous trade disputes over solar panels between the two sides. Lamy further cited the EU’s concerns about its tariff rates being significantly lower than those of the US, which facilitates the entry of China-made EVs into the region. This concern was cited as one of the major reasons behind the European Commission’s recent investigation, announced on Sept. 13. Currently, the EU imposes a duty of 10% on cars imported from China, compared to the 27.5% imposed by the US. In 2013, Beijing and Brussels agreed to establish a price floor on Chinese solar panel imports, which European manufacturers accused of benefiting from substantial government subsidies and distorting the markets. [Caixin, in Chinese]
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