Geneva, Switzerland – The European Commission has formally requested consultations with China at the World Trade Organization (WTO) over Beijing’s ongoing anti-dumping investigation into certain dairy products imported from the EU. The move, announced on September 23rd, marksthe first step in a potential trade dispute between the two economic giants.
The Chinese investigation, launched on August 21st, 2024, targetsliquid milk and cream with a fat content exceeding 10%, along with various cheeses originating from the EU. The probe specifically focuses on subsidies provided under the EU’s Common Agricultural Policy and certain national and regional programs.
The European Commissionmaintains that these subsidy programs are in line with international rules and do not cause harm to the Chinese dairy industry. In a statement, the Commission emphasized its commitment to closely monitoring the investigation and collaborating fully with EU producers and member state authorities.
The EU is confident that its agricultural policies comply with WTO rules and do not unfairly distort trade, said a Commission spokesperson. We are committed to upholding the rules-based trading system and will vigorously defend the interests of our dairy producers.
The EU’s request for consultations represents the initial stage of the WTO’sdispute settlement process. If these consultations fail to yield a satisfactory resolution, the EU could request the establishment of a WTO panel to adjudicate the matter.
China’s Ministry of Commerce (MOFCOM) has defended its decision to launch the investigation, citing the right of domestic industries to seek trade remedies under Chinese lawand WTO rules. The MOFCOM spokesperson stated that the investigation was initiated following a formal application from Chinese dairy producers, who alleged that EU subsidies were causing injury to their industry.
The investigation is being conducted in accordance with China’s laws and regulations, as well as WTO rules, said the MOFCOM spokesperson. We have conducted pre-investigation consultations with the EU and reviewed the evidence submitted by the applicants. Based on this review, we determined that the application met the conditions for launching an anti-dumping investigation.
The investigation period for the anti-dumping probe covers April 1st, 2023, to March 31st, 2024, for the alleged subsidies and January 1st, 2020, to March 31st, 2024, for the alleged injury to the Chinese dairy industry.
The EU’s challenge to China’sinvestigation comes at a time of growing trade tensions between the two economic powers. The dispute highlights the complexities of global trade, particularly in the agricultural sector, where government support programs often play a significant role. The outcome of the WTO consultations will be closely watched by both sides, as it could set a precedent for future trade disputesbetween the EU and China.
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