China Launches Anti-Subsidy Investigation Targeting EU Dairy Firms Amid Trade Tensions
Source: DairyNews.today
FrieslandCampina, Elvi, and Sterilgarda Alimenti SPA Named in Probe Following EU Tariffs on Chinese EVs
China has initiated an anti-subsidy investigation into dairy imports from the European Union, singling out prominent companies including FrieslandCampina from the Netherlands, Elvi from France, and Sterilgarda Alimenti from Italy. This probe comes on the heels of a recent EU decision to impose tariffs of up to 45% on Chinese electric vehicles (EVs), a move supported by lawmakers from Italy, France, and the Netherlands, Reuters reported.
The investigation, which commenced in August, targets imports of certain cheese, milk, and cream products from the EU. China’s Ministry of Commerce announced that it selected the companies involved based on export volume, product structure, and geographical distribution, aiming to assess whether subsidies have unfairly benefited these dairy products in the Chinese market.
This dispute marks a growing trade tension between China and the EU, with the European Commission swiftly launching a World Trade Organization (WTO) challenge against China’s probe. Notably, this is the first time the EU has sought WTO intervention at the onset of an investigation, reflecting the bloc's concern over potential repercussions for its dairy industry.
The EU ranks as China’s second-largest supplier of dairy products, following New Zealand. In 2023, the bloc exported approximately €1.7 billion ($1.84 billion) worth of dairy products to China, according to data from the European Commission's Directorate-General for Agriculture and Rural Development.
As China’s investigation unfolds, it could have significant implications for EU dairy exporters operating in one of the world’s largest dairy markets, potentially impacting trade relations across sectors.
The investigation, which commenced in August, targets imports of certain cheese, milk, and cream products from the EU. China’s Ministry of Commerce announced that it selected the companies involved based on export volume, product structure, and geographical distribution, aiming to assess whether subsidies have unfairly benefited these dairy products in the Chinese market.
This dispute marks a growing trade tension between China and the EU, with the European Commission swiftly launching a World Trade Organization (WTO) challenge against China’s probe. Notably, this is the first time the EU has sought WTO intervention at the onset of an investigation, reflecting the bloc's concern over potential repercussions for its dairy industry.
The EU ranks as China’s second-largest supplier of dairy products, following New Zealand. In 2023, the bloc exported approximately €1.7 billion ($1.84 billion) worth of dairy products to China, according to data from the European Commission's Directorate-General for Agriculture and Rural Development.
As China’s investigation unfolds, it could have significant implications for EU dairy exporters operating in one of the world’s largest dairy markets, potentially impacting trade relations across sectors.
