Brussels (The Brussels Morning Newspaper) – EU Commission undertakes WTO consultations challenging China’s anti-subsidy investigation into EU dairy.
The European Commission launched a consultation request at the World Trade Organization (WTO), questioning China’s initiation of an anti-subsidy probe against imports of certain dairy products from the EU. This is the first time the EU has chosen to challenge an investigation at its initiation stage. The EU’s action was spurred by an emerging pattern of China initiating trade defence measures, based on dubious allegations and insufficient evidence, within a short period.
Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade said, “The EU Commission is doing everything it takes to defend EU dairy producers and the Common Agricultural Policy from the abuse of trade defence instruments. The Chinese investigation on EU dairy is based on questionable allegations and insufficient evidence, therefore we will continue to challenge it vigorously in all available venues while calling on China to bring it immediately to an end.”
how does the EU plan to defend dairy producers?
The European Commission is following through on its pledge to firmly defend the interests of the EU dairy industry and the Common Agricultural Policy against harsh proceedings. The Commission has followed the inquiries very closely from the beginning, in full cooperation with exporting EU producers and Member State authorities. The Commission has decided to make full use of all available legal means to protect the EU industry against the abuse of trade defence instruments.
The consultations asked by the EU represent the first stage in WTO dispute settlement proceedings. If they do not direct to a satisfactory solution, the EU could request a forum to be set by the WTO to decide on this investigation.
What prompted China’s anti-subsidy investigation into EU dairy?
China initiated its dairy inquiry on 21 August 2024. The investigation targets liquid milk and cream with a fat content of more than 10% and various types of cheese from the EU. The probe targets subsidies under the EU’s Common Agricultural Policy as well as certain national and regional programmes. The EU Commission is confident that these subsidy procedures are fully in line with international rules and are not causing damage to the Chinese dairy industry.
