EU Renews Threat to Take China to WTO over Cars
Date: 14-Dec-05
Country: BELGIUM
Author: Jeff Mason
EU Industry Commissioner Guenter Verheugen said he objected to China's requirements that EU manufacturers take part in joint ventures without guarantees that they can control them. He also objected to new Chinese legislation that places the same tariffs on automotive parts that are applied to full vehicles.
"They want to force European producers to use the local market in China," Verheugen told a news conference.
"We have a long list of complaints from the European car manufacturers (about) how in reality market access and fair treatment in China is often neglected."
Verheugen was speaking after a group of auto industry executives and EU officials, dubbed CARS 21, agreed on a 10-year "roadmap" to make the key European sector more competitive.
The group said EU manufacturers face obstacles in the Chinese market such as investment restrictions and favouritism to domestic producers.
"The Commission will continue its close monitoring of Chinese business and regulatory developments with a view to assessing the possibility of success at an eventual WTO dispute settlement panel if the existing situation does not improve," it said in a statement.
SAFETY, ENVIRONMENT, REGULATION
Other recommendations included simplifying EU regulations and boosting road safety. The Commission will make legislative proposals based on the suggestions, including rules requiring new safety features for vehicles like stability controls that prevent rollovers, brake assist systems, daytime running lights and reminders to wear a seatbelt.
Ford of Europe chairman Lewis Booth told Reuters he was encouraged by the findings. Auto industry group ACEA, whose members had turnover of 452 billion euros ($537.3 billion) in 2001, urged EU member states and lawmakers to implement them.
The CARS 21 group recommended streamlining regulation by replacing 38 EU directives with rules drawn up by the United Nations Economic Commission for Europe and by letting manufacturers use "self- or virtual testing" for some issues rather than rely on outside inspectors.
The group said it wanted an approach to reducing emissions from light and heavy duty vehicles that did not rest on auto manufacturers alone.
"The group therefore endorses an integrated approach to reach the EU's target of 120 g/km involving all relevant stakeholders and measures," it added, referring to the European car industry's voluntary commitment to reduce output of carbon dioxide to 120 grams per car per km driven by 2012 from 185 g/km in 1995.
The European Federation for Transport and Environment (T&E), an environmental group, said an "integrated approach" was shorthand for shifting responsibility from car makers to other sectors.
"Instead of coming up with a plan to clean up new cars, the group has simply dismantled or watered down elements of the existing strategy," T&E Director Jos Dings said in a statement.
Verheugen said next week the Commission would adopt a proposal on emissions standards called "Euro 5". Another EU official said, however, that there was still disagreement within the Commission about requirements for nitrogen oxide emission reductions.
(additional reporting by Michael Shields in Frankfurt)
