Lawmakers Propose Tax on Metals Exported From France

PARIS – Two deputies in the French Parliament call for a European tax on exports of scrapped cars and electronic devices, aiming to curtail shipments of metal to Asia and protect a potential source of raw materials.

Michel Havard and Christophe Bouillon, one from each main political party, say in a report that Europe consumes 20% of the metals in the world but produces only 3% and needs to take strategic steps to protect supplies.

Lawmakers look to stem flow of junked European cars to China.

“We are at the mercy of foreign producers and price hikes caused by accelerating demand and higher and higher costs of mining,” Havard says.

The deputies support recycling of metals in addition to levying a European tax on exports of junked cars and electronics.

Recycling respects the environment by using less energy than making virgin metals, they say, adding it creates jobs.

Some 12 million vehicles are scrapped every year in Europe, yielding 12 million tons (1.09 million t) of potentially usable material. An export tax would put European recyclers on a more equal footing, according to the lawmakers.

Chinese companies buy dumped vehicles from European recyclers after they are cleaned of pollutants. They can afford to ship the scrapped cars halfway around the world for recycling because labor is cheaper there and working conditions are less-regulated, the deputies say.

Bouillon supports a ban on exporting materials if they can be recycled in Europe. He and Havard also suggest European industries using metals must incorporate a percentage of recycled material.

While their suggestions for European rules will be forwarded to the European Parliament, the deputies propose several actions France alone can take.

These include a ban on cash purchases of metals, which they say would reduce the growing number of thefts in France of copper wire, lead roofing material, aluminum siding and catalytic converters.

They also propose that France and French firms invest in foreign mining companies, using government loans and grants.

“China is now investing in all the mineral resources of the world, and we must follow that example,” Havard says.

He contends businesses in countries that extract minerals will add value to the metals with additional processing, and France will lose industrial jobs by not doing likewise.