The EU is set to vigorously safeguard its dairy sector in the ongoing customs dispute with China.
EU Stands Firm on Dairy Sector in Trade Feud with China
The European Union vowed to protect its dairy sector firmly in a trade dispute with China. On Thursday, a representative from the EU Commission dismissed claims by Beijing that EU aid for dairy items is injuring Chinese manufacturers. China's Ministry of Commerce initiated an "anti-subsidy probe" the previous day, potentially leading to tariffs on goods like fresh cheese, quark, and blue cheese.
The Chinese investigation extends to agricultural subsidies in eight EU nations, including Austria, Belgium, Ireland, Italy, and the Czech Republic. The EU Commission's data shows that EU dairy exports to China amounted to 1.68 billion euros in 2021. EU Commission spokesperson Olof Gil stated, "Brussels will take all required steps to guarantee that this examination adheres strictly to World Trade Organization (WTO) guidelines."
The Chinese action is perceived as retaliation in the dispute over EU taxes on Chinese electric vehicles. On Tuesday, the EU Commission declared provisional tariff increases of up to 36.3%, due to materialize in October's final quarter for an initial five-year period. The EU alleges China's mistreatment of EV manufacturer subsidies.
In response to the EU's increased tariffs announced in June, Beijing launched a subsidy probe into EU pork. Since January, Chinese authorities have also scrutinized suspected illegal subsidies on European liquors, including Cognac.
The EU Commission is concerned about the potential impact of China's "anti-subsidy probe" on its dairy exports, worth 1.68 billion euros in 2021. Despite this, Brussels has pledged to adhere to World Trade Organization guidelines during the investigation, with a spokesperson stating this firmly.
