China Launches Anti-Subsidy Investigation Against EU Cheese and Milk Imports
China has launched an anti-subsidy investigation into dairy products imported from the European Union (EU), highlighting increasing trade tensions between Beijing and Brussels. The Chinese Ministry of Commerce announced the probe on August 21, focusing on various EU dairy imports, including cheese, milk, and cream. In 2023, dairy exports from the EU to China were valued at €1.76 billion, accounting for over 12% of the EU’s total agri-food exports to the nation.
This investigation follows the European Commission’s announcement that it had concluded its inquiry into electric vehicles from China, proposing less severe measures than anticipated. The dairy probe was initiated at the request of China’s dairy industry, which claims that subsidies under the EU’s Common Agricultural Policy (CAP) and support from individual member states may harm Chinese producers.
The investigation will consider all types of EU cheese, including fresh, blue, and processed varieties, as well as cream and milk with a fat content exceeding 10%, not concentrated or sweetened. China ranks as the eighth-largest market for EU cheese exports.
In the first quarter of 2024, the principal EU exporters of cheese to China included Italy, Denmark, the Netherlands, and France. Paolo Zanetti, president of the Italian industry association Assolatte, emphasized the importance of the Chinese market, noting that exports are growing significantly. He remarked that EU agricultural products are often targeted in trade disputes, regardless of their relevance.
Potential duties on EU milk and cream exports could greatly affect the industry, given that these exports totaled €238.57 million and €323.47 million in 2023, respectively, compared to €189.87 million for cheese.
The European Dairy Association (EDA) expressed confidence that the EU and Chinese authorities would find a constructive resolution, as has occurred in past disputes. A spokesperson for the European Commission stated that they are aware of China’s investigation and will monitor it to ensure compliance with World Trade Organization (WTO) regulations, while also defending the interests of the EU dairy industry and the CAP.
In addition to dairy products, Beijing is also investigating EU pork exports, which began in June, in reaction to the EU’s tariffs on electric cars from China. This development is part of a broader pattern of trade tensions, with China having initiated an anti-dumping investigation into European alcohol spirits earlier this year.
As trade dynamics evolve, the results of the ongoing investigations are crucial for both the EU and Chinese markets.
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John Peterson graduated with a degree in Agricultural Sciences from Wageningen University in the Netherlands. His specialization is in sustainable crop production and soil health management. John is passionate about integrating modern technology with traditional farming methods to enhance productivity while preserving the environment. He currently works as a consultant, helping farmers adopt sustainable practices.