China Imposes Tariffs on EU Dairy Products Following Investigation

China's Ministry of Commerce (MOFCOM) has announced that tariffs will be imposed on certain dairy products imported from the European Union. These tariffs, ranging from 7.4% to 11.7%, will come into effect on Friday and are set to last for five years. The decision follows the final ruling of an anti-subsidy investigation.

The investigation was initiated on August 21, 2024, at the request of China's domestic dairy industry. According to a spokesperson from MOFCOM, the investigation adhered to principles of fairness, impartiality, openness, and transparency, and was conducted in accordance with Chinese laws and regulations as well as relevant World Trade Organization (WTO) rules.

The investigation found that the EU dairy products in question received subsidies, which resulted in material injury to the domestic dairy industry in China. The MOFCOM report concluded that there is a causal link between the subsidies provided to the EU dairy products and the injury caused to Chinese industry.

The tariffs aim to counteract the subsidies and protect the domestic industry from further harm. This move highlights ongoing trade tensions and the measures countries are willing to take to protect their domestic industries.

MOFCOM's announcement signals a significant step in China's trade policy concerning dairy imports and reflects the importance of the dairy sector to the country's economy.