Germany backs French push for US-style tariffs and quotas

{"text":[[{"start":9,"text":"Germany and other countries have backed a French proposal for new EU powers to impose tariffs swiftly on China, emulating the Trump administration’s measures to shield domestic industries from a glut of cheap imports."}],[{"start":23.6,"text":"Berlin and a handful of other governments, including those of Poland, the Netherlands and Belgium, will join Paris in calling for a new instrument at a leaders’ summit in Brussels starting on Thursday, according to four EU diplomats."}],[{"start":37.05,"text":"French President Emmanuel Macron last month proposed creating a European version of the US’s Section 301 tool, which can impose tariffs or import quotas on any country using “unfair trade practices”."}],[{"start":49.75,"text":"Support for a new instrument — whose scope has yet to be defined but would protect industry from Chinese imports and help it diversify, according to an EU official — has gathered pace quickly as the bloc grapples with a gaping trade deficit with China. "}],[{"start":65.15,"text":"As well as a diversification tool, “you also probably need a protective instrument”, said a senior EU diplomat. “If China has a market dominance, or [any] country . . . of more than 40 or 50 per cent, which might threaten our economic security then you might also have to use tariffs.”"}],[{"start":82.10000000000001,"text":"The most potent existing weapon, a safeguard measure, created huge collateral damage as it applied globally, the diplomat added."}],[{"start":90.2,"text":"A recent decision to protect the steel industry by halving low-tariff imports and charging 50 per cent has angered allies, including those with free trade agreements with the EU. “We took measures against overcapacity, but that instrument was not focused, so we hit some of our preferred partners also, Switzerland, UK, India, Japan,” said the senior diplomat."}],[{"start":null,"text":"

"}],[{"start":111.7,"text":"A second senior diplomat said that the EU’s existing anti-coercion instrument, which is more targeted but has never been used, was “difficult to implement”, and therefore a new trade defence tool was needed. "}],[{"start":123.75,"text":"“We remain, by principle, in favour of free trade, of the WTO, but we are not naive any more,” the senior EU diplomat said. “If you read the five-year plan of China, it is . . . an attack on the market. China has decided not to import anything any more, and to subsidise overcapacity, dumping products on our markets."}],[{"start":145,"text":"“That puts 50 per cent of our industry, our companies, at risk,” they said, adding that for some member states this figure was 70 per cent. “I’m very interested in seeing what the Commission will come up with [to tackle that].”"}],[{"start":158.85,"text":"The European Commission, which runs EU trade policy, has said it will consider new trade defence measures, including a “diversification instrument” that would oblige companies to obtain inputs from multiple sources to break dependence on China in areas such as rare earths and car batteries."}],[{"start":177.65,"text":"The OECD says China employs heavy use of subsidies. Beijing has consistently denied using unfair practices. "}],[{"start":185.9,"text":"The diplomats said rising unemployment and factory closures had hardened the mood across member states in recent weeks. However, there is still a reluctance to escalate in some capitals that are very open to Chinese investment and also fear Beijing’s retaliation.  "}],[{"start":201.15,"text":"Two years ago, member states narrowly voted to levy tariffs on electric vehicles for alleged subsidies. Since then, China has increased tariffs on imports of food and drink from the EU, and restricted its own exports of critical raw materials."}],[{"start":215.8,"text":"The proponents want to give more power to the Commission to take measures to bypass such resistance."}],[{"start":221.85000000000002,"text":"Commission president Ursula von der Leyen said after talks at the G7 summit: “We need to strengthen our own resilience, in manufacturing, technology, energy and defence. That means creating the right conditions for industry to thrive. And ensuring we have the right tools to protect our market when necessary.”"}],[{"start":241.10000000000002,"text":"In March, Belgian Prime Minister Bart De Wever wrote a letter to von der Leyen calling for urgent action against China’s “systemic threat” despite possible retaliation."}],[{"start":251.55,"text":"“The question is, are we ready to endure the pain? My answer is yes, as we have arrived at a point of no return in which we need to make difficult choices on the short term towards China to protect our industries, economies and the well-being of our citizens on the long term,” De Wever wrote."}],[{"start":268.2,"text":"Additional reporting by Henry Foy in Brussels"}],[{"start":278.59999999999997,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1781743601_9158.mp3"}