Last week, the European Commission announced the review of the trade defence measures against electric cycles from China. The review has been requested by EBMA, who wants the measures to be extended for another 5 years. However, over the past 5 years, LEVA-EU has collected numerous testimonies from European companies that have suffered serious damage due to the measures. Some have even gone bankrupt.

It may be in the interest of a small minority of EU companies to continue the measures, but for the majority it is a constant threat and a major obstacle. In response to this, LEVA-EU is taking decisive action by establishing an ad hoc group to unite with affected companies and jointly challenge the potential extension of the trade defense measures. This collaborative effort aims to represent the interests of the broader industry and address the concerns of companies that have experienced adverse effects of the measures.

LEVA-EU will apply for the ad hoc group to be granted interested party status, which will allow the group to comment on the requested review and also request a hearing with the Commission. In all this, the group will also be supported by a specialized lawyer. LEVA-EU will further support the companies in the ad hoc group with lobbying and communication on the matter.

The more companies join the group, the greater the chance that opposition to the measures will be taken into account. LEVA-EU therefore warmly calls on all companies that are damaged in some way by the measures or that oppose the measures, to register for the ad hoc group. A first meeting of the group is planned for Thursday, 15 February, in Brussels. The group is open to all companies, regardless of whether they are members of LEVA-EU. You can register by expressing your interest in a simple email to LEVA-EU manager Annick Roetynck, annick@leva-eu.com. If you wish, you can also call her for further information: +32 475 500 588

It has long been clear that the focus of the EBMA is less on preventing dumping and injury recurrence, than on fostering protectionism, primarily led by a few large groups within the EU. All this is happening under the guise that the trade defence measures will result in return of production to Europe, which in turn will result in the creation of millions (sic) of jobs. Both EBMA and the Commission are of course wisely silent about the fact that trade defence legislation, by its nature, is not designed with the goal of reshoring industries nor fostering job creation. Let alone that they care at all about the jobs that have already disappeared in the EU due to the measures.

The current measures disproportionately impact mainly smaller entrepreneurs, who inadvertently fall victim to the immense complexity of the legislation. That complexity is partly due to the interweaving between the measures against the electric cycles with the measures on essential bicycle components. LEVA-EU also raises concerns about EBMA not shying away from providing companies with incorrect legal information, which raises serious questions about integrity.

A potential 5-year extension of the trade defence measures is predicted to exacerbate the challenges faced by many more European companies, leading to reduced supply, which will in turn lead to significant job losses in the retail sector. It will also lead to increased prices, and a stifling of innovation. LEVA-EU emphasizes that the measures primarily serve the interest of a few large groups, who are merely interested in safeguarding their big cash cow, i.e. the electric bicycle with pedal assistance up to 25 km/h and 250W.

The consequences extend beyond the financial burden on European citizens, to include countless European companies that are now or will soon come under fire. Moreover, the measures prevent many more European companies to enter the market, since a new company in the EU cannot start up unless it pays anti-dumping duties for an indefinite period, without any prospect of any refund.

Last year the European Union had the dubious honour of commemorating 30 years (!) of anti-dumping measures against conventional bicycles from China. This “milestone” prompts questions about the effectiveness of European trade defence measures and the resilience of the “Union Industry”. The measures against electric bicycles will never last 30 years, because by then the electric bicycle sector will simply have been wiped off the map, thanks to the so-called “Union Industry” and EBMA. That is precisely why it is important that at least someone tries to provide some resistance. Five more years of trade defence measures on electric cycles from China will never foster an environment conducive to fair competition, innovation and sustainable growth of the sector in Europe.

Annick Roetynck,
LEVA-EU Manager

Below are the links to relevant Commission publications in the Official Journal:
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C_202400802
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C_202400798