UK considers reducing import tariffs on Chinese e-bikes

UK considers reducing import tariffs on Chinese e-bikes

Currently, the United Kingdom imposes tariffs on Chinese imports of e-bikes ranging from 18.8% to 79.3%, which were established after the UK’s departure from the European Union and the unbundling of its trading system with the EU.

However, after an in-depth investigation and assessment by the Trade Remedies Authority (TRA), the TRA has now concluded that “the continued imposition of anti-dumping and countervailing measures on Chinese e-bikes is contrary to the UK’s economic interests and has recommended that these measures be withdrawn”.

That is, after a period of investigation, the TRA has now concluded that the continued imposition of anti-dumping and countervailing measures on Chinese electric bicycles(top 10 electric two-wheeler manufacturers in China) is “not in the economic interest of the United Kingdom” and should be withdrawn.

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    TRA Organization

    The TRA is a UK agency that investigates the need for trade remedy measures in response to unfair import practices and unforeseen import surges.

    Following Brexit, a number of EU trade remedy measures of interest to UK producers have been incorporated into UK law, and TRA is currently reviewing each of these measures to assess their suitability for UK needs.

    Following an investigation into the e-bike market, which included a survey of e-bike customers, TRA is now recommending that anti-dumping and countervailing measures on Chinese e-bikes be withdrawn.

    TRA, the UK body responsible for investigating the need for trade remedy measures, has recently conducted a comprehensive review of the e-bike market, including in-depth research into consumer demand.

    Based on these studies, TRA recommended that tariff barriers on Chinese e-bikes be removed to promote competition and prosperity in the market.

    TRA Organization

    Will anti-dumping measures be retained in the EU?

    Meanwhile, the EU is also reviewing China’s anti-dumping duties on electric bicycles.

    After receiving a request for review from the EU Bicycle Manufacturers Association (EBMA), the European Commission said that lifting the anti-dumping measures could allow dumping to continue and cause further damage to the European industry.

    EMBA wrote: “With more than 1,200 sustainably-manufactured SMEs and 180,000 green jobs in the EU bicycle sector at at risk, and they deserve a proper review by the Commission to confirm whether it is necessary to maintain legitimate trade defenses to ensure fair competition in the EU and further growth for EU producers in the future.”

    The EU investigation should be concluded within 12 months and in any case no later than 15 months from the date of publication of the announcement on January 17, 2024.

    EBMA emphasizes that more than 1,200 sustainable bicycle manufacturing SMEs and 180,000 green jobs in Europe could be affected and calls on the European Commission to consider this carefully.

    Read more: top 10 electric bike manufacturers in Europe.

    Will anti dumping measures be retained in the EU

    A win-win for the UK economy and cycling business

    A TRA study found that removing anti-dumping duties on Chinese e-bikes would bring significant benefits to the UK economy.

    It is expected to save the UK economy up to £51 million (€60 million) per year, boost the e-bike retail market, reduce the price of each e-bike by an average of £260 (€310), and in turn boost consumer demand for purchases, with 31,000 additional e-bikes expected to be sold each year.

    The UK e-bike market has shown rapid growth in recent years, with sales expected to reach £325 million (€385 million) in 2023, a significant increase from £96 million (€114 million) in 2018.

    In a statement, the TRA said, “Whilst the revocation of the measures may have caused the UK production sector to take some hits. However, given the significant benefits it brings to the UK economy and consumers, this potential damage will be significantly offset.”

    Under the U.K.’s revised trade remedy system, the TRA will submit alternative options to the U.K. Secretary of State for Business and Trade for the withdrawal of the tariffs.

    These options include applying tariffs only on folding e-bikes to protect the interests of UK-based producers in this market segment.

    All options are currently at the consultation stage and TRA will make a final recommendation to the Secretary of State in the future. A specific timetable has not yet been announced.

    Read more: top 10 electric bike manufacturers in the UK.

    A win win for the UK economy and cycling business

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    Chocolatezhu
    Hi, I'm an experienced writer about mechanic and an expert on bike and e-bike tech who appreciates practical, beautifully-engineered things. And of course, I love cycling.
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