Spain pushes for diplomatic solutions in EU-China trade dispute

Spain’s Economy Minister Carlos Cuerpo has called for continued negotiations between the European Union and China to prevent an escalation of protectionist measures that could harm both economies.

Speaking to Bloomberg Television on Thursday, Cuerpo emphasised the importance of keeping dialogue open to find mutually beneficial solutions and avoid a “lose-lose” situation.

The EU and China, the bloc’s third-largest trading partner, are currently exchanging tariff threats.

China recently announced plans to increase duties on European-made gasoline cars with large engines and impose a 39 per cent deposit on EU brandy imports. These measures follow the EU’s decision to impose tariffs of up to 45 per cent on Chinese electric vehicles for the next five years.

Cuerpo’s remarks come amid ongoing negotiations, with EU countries divided on whether to maintain the status quo or adopt a tougher trade stance against Beijing.

The EU’s trade dispute with China began after the bloc accused Chinese manufacturers of unfairly benefiting from state subsidies and flooding the European market with excess production.

Spain, a significant exporter of pork, could be particularly affected by China’s anti-dumping investigations into EU dairy and pork products. Prime Minister Pedro Sanchez and German Chancellor Olaf Scholz have both called for a reconsideration of the EU’s new EV tariffs to avoid further escalation.

Cuerpo highlighted the need for the EU to support a multilateral rules-based order while avoiding naivety in its trade policies. The outcome of these negotiations will be crucial for the future of EU-China trade relations.