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What happens next in the EU investigation into Chinese EVs?

What happens next in the EU investigation into Chinese EVs?

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What happens next in the EU investigation into Chinese EVs?

China and the European Commission have agreed to start talks on the planned imposition of EU tariffs on Chinese-made electric vehicles (EVs) being imported into the European Union, opening the door to potential de-escalation.

The European Commission is planning to impose provisional duties on EVs produced in China ranging from 17.4 per cent to 38.1 per cent, on top of its standard 10pc tariff for car imports.

The duties are due to apply by July 4.

WHAT ARE PROVISIONAL MEASURES?

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Provisional duties can be imposed within nine months of the start of an EU anti-subsidy investigation if the Commission concludes it needs to prevent injury to EU industry.

They can be applied for a maximum of four months, by which point the Commission will decide whether to apply final duties, known as definitive duties. In the EV case, the deadline for this is Nov 3.

Provisional duties are only collected if definitive duties are imposed at the end of the investigation. If definitive duties are lower or not applied, then provisional duties are adjusted down accordingly. Until then, customs authorities normally just require a bank guarantee from importers.

The duties can also be applied retroactively for as much as 90 days, so in the EV case from early April, with a decision on this taken at the end of the investigation.

WHAT HAPPENS NEXT?

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On June 22, Germany’s Economy Minister Robert Habeck said he had been informed by EU commissioner Valdis Dombrovskis that there would be concrete negotiations on the tariffs with China.

“What I suggested to my Chinese partners today is that the doors are open for discussions and I hope that this message was heard,” Habeck said in Shanghai after meetings with Chinese officials in Beijing.

By July 4, the Commission is due to publish in the EU official journal a lengthy document detailing the ongoing investigation and its findings. The provisional duties will then apply the following day.

Interested parties such as China and EV producers have until July 18 to comment on the findings. They can also request a hearing.

The Commission has already visited more than 100 sites of automakers in China and Europe and done the bulk of its investigation.

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Its final report generally reads as a confirmation of its provisional findings, with possible adjustments following comments received.

Definitive duties are often a little lower than the provisional rates, reflecting an acceptance of some of these arguments.

One new element will be Tesla’s request that the Commission calculate a separate duty rate for it.

The largest EV exporter from China to Europe will want to have a lower rate than the 21pc for companies that have cooperated with the investigation, a group it is currently in.

As an alternative to duties, exporters can commit to sell their products at or above a minimum price. Chinese exporters agreed such an undertaking in the case of solar panels a decade ago. However, cars are not commodities, so it is hard to see how a minimum price could be applied.

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WHO DECIDES?

At the provisional stage, the Commission has full power to impose duties, although it does consult EU members and is supposed to take their positions into account. They are to submit their positions by July 15.

At the end of the investigation, the Commission can then propose definitive duties, normally applying for five years.

It can be blocked if a qualified majority of the European Union’s 27 members oppose measures. A qualified majority means 15 EU members representing 65pc of the EU population. In most cases, there is no blocking majority.

WHAT HAPPENS AFTER THE INVESTIGATION?

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Any company not in the sample group of BYD, Geely and SAIC that wishes to have its own individual duty can ask for an “accelerated review” just after the imposition of definitive measures. Such a review should last a maximum of nine months.

The Commission can also carry out an “interim review” after a year has elapsed if the measures are no longer necessary or if they are not sufficient to counteract subsidies.

The Commission itself often looks into whether producers are evading duties via exports of parts for assembly elsewhere. For the EU, such circumvention exists if 60pc or more of the value of parts are imported from the country subject to duties and if the value added in the assembly is no more than 25pc.

Companies can challenge the measures at the European Court of Justice. China can take the European Union to the World Trade Organization. Both legal paths can take well over a year. 

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Various schemes launched to boost agri, livestock sectors: minister

Various schemes launched to boost agri, livestock sectors: minister

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Various schemes launched to boost agri, livestock sectors: minister

 Punjab Minister for Agriculture and Livestock Syed Ashiq Hussain Kirmani said the livestock sector is a top priority of the government, and practical steps are being taken for its development.

He expressed these views during his visit to the sub-campus of the University of Veterinary and Animal Sciences and the Buffalo Research Institute in Pattoki on Saturday.

The provincial minister inspected various departments of the institute, including the calves rearing centre, dairy section, and research laboratories.

The minister on this occasion said that institutions like the University of Veterinary and Animal Sciences are providing such education and training to our youth that they can play their role in the livestock sector in their practical life.

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He said under the leadership of Punjab Chief Minister Maryam Nawaz, the government’s focus is on small farmers with land holdings ranging from one to twelve and a half acres, for whom various schemes are being launched in the agriculture and livestock sectors.

He said according to the vision of the CM, the Livestock Department is paying full attention to increasing milk and meat production and implementing body fattening programmes for livestock.

The minister said that for the first time in Punjab, a scheme called the Chief Minister Punjab Livestock Card has been introduced for small farmers, benefiting 80,000 farmers over two years.

Four lakh animals will be prepared for export through feed and fattening. Kirmani said that the Nili-Ravi breed is the pride of Punjab. The Livestock Department is striving to improve the Nili-Ravi breed of buffaloes in Punjab.

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Govt buys per unit electricity for Rs750 from specific IPP: Ejaz

Govt buys per unit electricity for Rs750 from specific IPP: Ejaz

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Govt buys per unit electricity for Rs750 from specific IPP: Ejaz

Former Caretaker Federal Minister for Commerce Gohar Ejaz has said the government has been purchasing electricity from a specific power plant at the rate of Rs750 per unit under IPPs contract deal.

“We have been paying Rs60 per unit due to these corrupt contracts. Out of total IPPs, 52 per cent belongs to the government while 28 per cent is being run by the private people of Pakistan,” Gohar disclosed.

“I have raised my voice against 40 families  and shared the data to save the country from them. It is surprising the government is paying Rs150 billion to a specific power plant which is generating merely less than 15 per cent of its capacity,” he said.

“Most IPPs are running at less than 20 per cent of their capacity while payments of Rs1.95 trillion have been made to these IPPs which have been confirmed.

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The former commerce minister reveled the government had been paying Rs370 billion to three IPPs which were generating less than 15 per cent of their capacity.

He says the solution to the problem is to pay to the IPPs ‘no capacity charges.

Read only: Gohar Ejaz urges Leghari to make IPP payment record public

“The IPPs must be paid for what they generate,” he highlighted.

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Nigeria’s Dangote refinery in talks with Libya to secure oil

Nigeria’s Dangote refinery in talks with Libya to secure oil

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Nigeria's Dangote refinery in talks with Libya to secure oil

Nigeria’s Dangote refinery is in talks with Libya to secure crude for the 650,000 barrels per day (bpd) plant and will also seek Angolan oil, a senior executive said, as it seeks to overcome problems with domestic supplies.

The $20 billion refinery, built by Africa’s richest man Aliko Dangote on the outskirts of Lagos is Africa’s largest, and is designed to end Nigeria’s dependence on imported fuels because of insufficient refining capacity.

Since Dangote began operations in January, it has been unable to get adequate crude supplies in Nigeria, which, although Africa’s biggest oil producer, is struggling with theft, pipeline vandalism and low investment.

Dangote has resorted to importing crude from as far as Brazil and the United States.

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“We are talking to Libya about importing crude,” Dangote refinery senior executive Devakumar Edwin told Reuters late on Saturday. “We will talk to Angola as well and some other countries in Africa.”

He declined to give detail about the talks, but said international traders and oil companies were among the biggest buyers of Dangote’s gasoil, much of which was being exported.

“The biggest offtakers are the two big traders Trafigura and Vitol and BP and, to some extent, even TotalEnergies. But all of them are saying they are taking it to offshore,” Edwin said.

Traders and shipping data have shown that Dangote is increasing gasoil exports to West Africa, taking market share from European refiners.

Edwin said Dangote’s oil trading arm was operational, with staff in London and Lagos, to help manage supplies and sell products. Reuters first reported the planned trading arm in March.

Nigeria’s upstream regulator has clashed with Dangote, saying the sulphur content in its gasoil was above the required limits of 200 parts per million (ppm).

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Aliko Dangote has denied that, saying the sulphur level was higher when production started, but had fallen to 88 ppm and would sink to 10 ppm in early August as output rises.

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