Beijing launches probe into EU dairy subsidies amid escalating trade tensions
Date
8/22/2024 8:16:46 AM
(MENAFN) On Wednesday, Beijing announced the launch of an investigation into European subsidies for certain dairy products imported into China. This move comes just a day after the European Union revealed its plan to impose tariffs of up to 36 percent on Chinese electric vehicles for the next five years, signaling an intensification of trade disputes between the two major economies. The Chinese Ministry of Commerce stated that the investigation would cover a range of dairy products, including fresh cheeses, curds, blue cheeses, as well as specific types of milk and cream. The probe is set to examine support packages provided to these products originating from the European Union, starting from August 21, 2024.
According to the Ministry of Commerce, the decision to initiate this investigation followed a request submitted by the China Dairy Association on July 29, urging a review of European subsidies. This was followed by consultations between Chinese officials and the European Union on August 14. The investigation will scrutinize European support mechanisms in place up to the end of March 2024, as well as assess the impact of these subsidies on the Chinese dairy sector from early 2020 to the end of March 2023. The focus will be on key European policies, including the Common Agricultural Policy and various national support schemes across several member states, such as Ireland, Austria, Italy, Belgium, Croatia, Finland, Romania, and the Czech Republic.
The Ministry of Commerce noted that the investigation is expected to last for a year, with the possibility of a six-month extension under special circumstances. This inquiry highlights the growing trade friction between China and the European Union, as both sides seek to protect their domestic industries amidst a challenging global economic environment. The European Union's dairy exports to China amounted to €1.68 billion (USD1.87 billion) last year, according to data from the European Commission's Directorate-General for Agriculture and Rural Development, emphasizing the significance of this sector in the ongoing trade tensions.
MENAFN22082024000045015682ID1108589428
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.