The UK has announced that plans for a bilateral summit with the EU are in the works, the day after the government stated it wants to strengthen relations with the bloc.
Amid increasing tensions between the EU and China over trade in electric vehicles (EVs), business and trade secretary Jonathan Reynolds announced that the UK would be holding off on applying its own tariffs to Chinese EVs.
EU-UK Summit
Following the UK’s commitment to a more “mature” relationship with the EU, officials from both sides of the channel have announced plans to hold a bilateral summit in the next six months.
The FT reports that, although the plans have just been established, the groundwork for building a stronger relationship is already being laid, with European relations minister, Nick Thomas-Symonds, speaking to European Commission vice-president Maroš Šefčovič this week.
Regular meetings with key trading nations like China and India have been suggested as model for the summit, with one diplomat telling the publication:
“If we have summits with the US or Asean, it would make perfect sense to have a summit with the UK, our nearest neighbour”.
PM Sir Keir Starmer is set to host 50 European officials at Blenheim Palace this week, a plan put in place prior to the general election, when Starmer still led the opposition.
Trade ambitions
While Labour was emphatic about not rejoining the customs union throughout its election campaign, it has said it will seek opportunities to improve the existing Trade and Cooperation Agreement (TCA) the UK has with the bloc.
The most notable of its objectives is to achieve a veterinary agreement that would ease border checks on animal- and plant-based products.
No to tariffs
Reynolds told fellow G7 ministers that the UK would not follow the EU in applying tariffs to Chinese Electric Vehicles (EVs), the FT reports.
Speaking at a group meeting in Italy yesterday (16 July), he said, despite strong concerns about China’s subsidised manufacturing sector, no formal investigation has been launched:
“I am not ruling anything out but, if you have a very much export-orientated industry, the decision you take [has to be] the right one for that sector.”
Trade remedies on hold
The typical precursor to any tariffs being applied would be an investigation by the Trade Remedies Authority, triggered by UK industry raising a complaint about the level of threat posed by an international producer.
However, British car manufacturers haven’t made any reports to the body about Chinese EV imports.
EV threat
Last month the EU introduced additional duties on Chinese EV imports, taking the total potential tariff an exported car could face to 38.1%.
However, commentators don’t expect this to deter manufacturers in the face of 100% tariffs imposed by US president Joe Biden earlier this year.
Chinese manufacturers have also been partnering with European firms and setting up factories inside the bloc, in a bid to secure market access long term.
With a phase-out of cars run on fossil fuels a key component of the drive to net zero, manufacturers globally have sought to introduce electric and hybrid models.
China has had significant success in the space, selling EVs and other green tech internationally in a bid to counter pressure from a sluggish domestic economy.
