| Author (Person) | Smith, Emily |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.11, No.38, 27.10.05 |
| Publication Date | 27/10/2005 |
| Content Type | News |
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By Emily Smith Date: 27/10/05 The EU could embark on a round of 'car wars' with China in a trade dispute about Beijing's protection of domestic carmakers, according to a draft report prepared for the European Commission. The report envisages a challenge at the World Trade Organization (WTO) over alleged favouritism towards China's own motor manufacturers. The idea is put forward in the 'Cars 21' group, which was set up by Industry Commissioner Günter Verheugen in January to look at ways of making the European car industry more competitive. The group is scheduled to adopt its final report on December 12. A draft of the report, seen by European Voice, says "discriminatory activities and idiosyncratic regulation" in China are blocking EU access to the Chinese car market. It recommends that the Commission should monitor Chinese business and regulations "with a view to assessing the possibility of success at an eventual WTO dispute settlement panel if the situation does not improve". Commission spokesman Gregor Kreuzhuber said Verheugen was now "in regular dialogue with China" on the subject, but it was "premature" to assume the draft comments would be in the final report. He said China was just one of many issues being discussed by the Cars 21 group. "[China] is a concern for carmakers faced with obstacles such as administrative barriers, but changes are being made to the report all the time," he said. At a hearing in the European Parliament earlier this month, Verheugen also said he was concerned that China might be side-stepping EU vehicle safety standards, by selling small batches of cars with approval from national regulators. On 21 October MEPs sent a letter to the incoming German Chancellor Angela Merkel, expressing doubts about German imports of the Chinese Jiangling Landwind car. Trade Commissioner Peter Mandelson is currently waiting for approval from member states of a mandate to start car trade talks with China. His spokesman Peter Power said: "Our main vehicle trade concern currently is China." He added that the Commission hoped to start negotiating a new framework agreement by the end of the year. Power said the Commission would push in particular for a reduction in tariffs, particularly on spare car part imports. He said Mandelson would also raise the issue with Chinese Trade Minister Bo Xilai on 4 November. The Commission and China this summer were locked in a textiles trade dispute, dubbed "bra wars", after the EU imposed quotas on Chinese clothing imports. The Cars 21 report will focus on a timetable for vehicle regulation. The draft says the EU should soften state aid rules for the car industry and consider voluntary agreements as well as binding legislation. The group says the car industry is currently subject to more state aid rules than other sectors, and that the Commission should revise this situation. A ten-year 'roadmap' of "clear and unambiguous policy measures" is currently being drawn up to help industry invest wisely. But the report steers clear of recommending hard legislation, stressing the importance of voluntary agreements. In some cases, says the report, the Commission could scrap EU legislation altogether, replacing it with international United Nations regulations. The draft notes however that EU car industry group ACEA is opposed to UN rules when these are "more stringent" than their European equivalent. Article reports on a draft report to be adopted on 12 December 2005 by the European Commission's high level group on automotive regulation, Cars 21, suggesting that discriminatory activities and idiosyncratic regulation in China were blocking EU access to the Chinese car market. According to the author of the article the report was to recommend that the European Commission should monitor Chinese business and regulations with a view to assessing the possibility of success at an eventual WTO dispute settlement panel if the situation did not improve. |
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| Source Link | http://www.european-voice.com/ |
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| Subject Categories | Business and Industry |
| Countries / Regions | China, Europe |
