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EU at WTO to challenge China’s dairy investigation

No to China’s trade defence based on "questionable allegations and insufficient evidence"

The European Commission has launched a consultation request with the World Trade Organisation (WTO-OMC) to challenge the opening by China of an anti-subsidy investigation into imports of certain dairy products from the EU. The Union has for the first time decided to contest an investigation at its opening stage: the action, the statement says, was justified by "The emergence of a model of trade defence measures by China, based on questionable allegations and insufficient evidence, in a short period of time".

In this way, the Brussels note continues, the Commission "has fulfilled its commitment to firmly defend the interests of the EU dairy industry and the Common Agricultural Policy against unfair practices". The Commission "has followed the investigation very closely from the beginning, in full cooperation with EU exporting producers and Member State authorities": it is determined "to make full use of all legal means available to defend EU industry from the abuse of trade defence instruments".

Consultations requested by the EU, adds the official statement, "represent the first step in the WTO dispute settlement procedure: if they do not lead to a satisfactory solution, the EU could request the establishment of a panel by the WTO to decide on this investigation".

China, we recall, launched the dairy products inquiry on 21 August 2024: the survey covers liquid milk and cream with a fat content of more than 10% and various types of cheese from the EU. The investigation concerns subsidies under the EU’s Common Agricultural Policy and certain national and regional programmes. The Commission is satisfied that these subsidy schemes are "fully in line with international standards and are not causing injury to the Chinese dairy industry".

The Commission, the official Brussels note further states, "is doing everything possible to defend EU dairy producers and the Common Agricultural Policy from the abuse of trade defence instruments. China’s investigation into European dairy products "is based on questionable allegations and insufficient evidence, so we will continue to strongly challenge it in all available fora, calling on China to stop it immediately".

"The Commission is doing everything it can to defend EU dairy producers and the Common Agricultural Policy from abuse of trade defence instruments -says Valdis Dombrovskis, Executive Vice-President and Trade Commissioner-. The Chinese investigation into EU dairy products is based on questionable allegations and insufficient evidence, so we will continue to strongly challenge it in all available fora, calling on China to stop it immediately".

Italy had taken a stand against these Chinese investigations on the EU dairy dairy, calling for a prompt response from the EU and, as the general director of the Consortium for the Protection of Grana Padano Stefano Berni has stated at the time, an equally firm consumer protection.

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EFA News - European Food Agency
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