EU Challenges China’s Dairy Investigation at WTO Amid Escalating Trade Dispute

This marks the first time the EU has taken action at the outset of an investigation, rather than waiting for the implementation of trade measures.

"The EU's response was driven by an emerging pattern of China initiating trade defence measures, often based on questionable claims and insufficient evidence within a short time frame," the European Commission stated.

Under WTO rules, the proceedings will begin with a 60-day consultation period between the parties involved. Should these consultations fail to yield a satisfactory resolution, the EU has indicated it will request the establishment of a WTO adjudicating panel. These panels typically take over a year to reach a conclusion.

China’s anti-subsidy investigation, launched on August 21, targets EU liquid milk, cream with a fat content above 10%, and several varieties of cheese. The European Commission expressed confidence that the EU's dairy subsidy programs comply with international regulations and are not detrimental to China's dairy industry.

This dispute follows the EU's imposition of provisional duties in July on electric vehicles manufactured in China. EU members are expected to soon vote on final tariffs, which, if approved, will remain in place for five years.

In addition to dairy, China has ongoing anti-dumping investigations into EU brandy and pork products.