EU vows to defend dairy sector amid Chinese probe

(MENAFN) On Thursday, the European Commission pledged to "firmly" support the dairy products sector in Europe following the initiation of a Chinese investigation into the continent’s support measures for this industry. This development came in the wake of Brussels imposing additional tariffs on Chinese electric car imports. The Chinese probe focuses on a variety of dairy products, including fresh cheeses, curds, blue cheeses, as well as certain types of milk and cream. If China proceeds with its planned actions, it could strain relations between EU governments and European farmers, exacerbating existing tensions related to the transition towards a green economy, which has significantly impacted agricultural returns.

Olof Gehl, an EU spokesman, emphasized that the Commission would robustly defend the interests of the dairy sector and the Common Agricultural Policy. He assured that all necessary steps would be taken to ensure the investigation adheres to World Trade Organization (WTO) rules. The Chinese investigation scrutinizes key EU policies and programs, including the Common Agricultural Policy and national support schemes in several countries such as Ireland, Austria, Italy, Belgium, Croatia, Finland, Romania, and the Czech Republic. The measure will be in effect for one year with the possibility of a six-month extension. China could impose additional duties on these products if it finds that EU practices are unfair and detrimental to competition.

This action by China follows a January announcement that it was investigating alleged anti-competitive behavior by European imports of wines, particularly cognac from France. This investigation has prompted Brussels to look into China's practices more closely, highlighting ongoing trade tensions between the two regions. 

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