Trade: EU and China reach an agreement in the dispute over hybrid exports

“After intensive consultations, both sides have reached an agreement on trade in hybrid vehicles in accordance with WTO rules,” said a joint statement from the EU Commission and the Chinese Ministry of Commerce on Friday evening local time. A compromise regarding e-car tariffs is also being suggested.

The agreement will limit imports of Chinese hybrid and plug-in hybrid vehicles into the EU, EU Trade Commissioner Maros Sefcovic said at a press conference in Beijing. Over the next four years, imports of hybrid and plug-in hybrid vehicles are expected to be half lower than previously forecast. Sefcovic said this would result in “several million fewer Chinese vehicles” entering the European market than without the agreement.

Sefcovic left it open how many vehicles China will be allowed to export to the EU in the future and how this number relates to this year's imports. When asked, the EU Commissioner did not want to provide further details about the agreement. He will first present the deal to the EU heads of government, who will have to decide whether to accept the compromise with China.