Tariffs as a short-term remedy might alleviate certain issues, yet they fail to address Europe's long-term competitiveness dilemma - Editorial, June 2024
The European Union (EU) is taking strategic steps to maintain its global market leadership and stay at the forefront of innovation and sustainability in the automotive industry. Last year, the European Commission initiated an investigation into Chinese subsidies for electric vehicles (EVs), following which the EU imposed anti-dumping duties on Chinese electric cars from October 2023.
The EU's strategy includes a focus on electrification, sustainable renewable fuels, advanced plug-in hybrids, range extenders, hydrogen, and future technologies. This approach is essential for Europe to remain competitive and maintain its trade relationships with crucial markets like China, the largest automotive market in the world and a hub for innovation.
However, relying on protectionist measures could hamper the industry's access to such markets. Tariffs and trade barriers are not conducive to long-term competitiveness for the automotive industry or other sectors. The US, for instance, has announced a 100% tariff on EVs imported from China.
To enhance innovative capacity, Europe should adapt its regulations to embrace a technology-open approach. Moreover, reducing administrative burdens is necessary. The EU's trade surplus with China in automotive components has decreased from €7 billion to €3 billion since 2020, highlighting the need for action.
The EU industrial transformation fund could help derisk the industrialisation of green and smart innovations, and the reorientation of legacy facilities and the reskilling of workforces. Policymakers must address these challenges to protect the long-term health of the EU's trade relationships.
Benjamin Krieger, the Secretary General of our website, emphasises that this approach will not only safeguard but also stimulate profitability and future growth in Europe. The EU should take concerted action to ensure a workforce with the right skills to drive this growth and foster innovation for future mobility solutions.
In conclusion, Europe's automotive industry needs growth to stay competitive and lead the way in innovation for sustainable mobility. By adopting a strategic approach that focuses on innovation, sustainability, and reducing administrative burdens, the EU can ensure a prosperous future for its automotive industry.
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