The European Commission vowed Wednesday to defend the interests of European Union (EU) dairy producers and the Common Agricultural Policy (CAP) in the face of a new Chinese investigation into alleged European subsidies to the sector, while admitting its interference.
“The Commission will firmly defend the interests of the EU dairy sector and the Common Agricultural Policy and will intervene where necessary to ensure that the investigation is fully consistent with the relevant WTO rules. [Organização Mundial do Comércio]”, – responded the institution’s trade representative Olof Gill via the social network X (formerly Twitter).
Reacting after the investigation was announced, Olof Gill wrote that “the European Commission takes note of the Chinese government’s decision to launch an investigation into the subsidisation of imports of certain EU dairy products.”
“We will now analyse the request and follow the process very closely in coordination with EU industry and Member States,” the guardianship representative concluded.
China announced on Wednesday an investigation into some EU dairy imports for alleged subsidies to the sector, in the context of tensions with Brussels over Chinese-made electric vehicles, which have already led to the application of countervailing tariffs.
The investigation follows a petition filed on July 29 by the China Dairy Industry Association and will focus on products imported between April 2023 and March 2024 and the alleged damage these purchases caused to the Chinese sector.
The process will analyse dairy products such as fresh cheese, quark and cream, and the impact of dairy subsidy programmes in Ireland, Austria, Belgium, Italy, Croatia, Finland, Romania and the Czech Republic.
The procedure targets a number of subsidies provided under the EU CAP.
On Tuesday, the European Commission confirmed its intention to introduce countervailing duties on electric vehicles made in China, including those from North American Tesla, which has a factory in Shanghai.
Brussels believes that prices for Chinese cars are artificially low due to government subsidies that distort the market and harm the competitiveness of European manufacturers.
These rates, which can reach 36.3%, replace preliminary taxes imposed in early July on Chinese-made electric vehicles.
Beijing has criticized the decision and threatened retaliation several times in recent months.
The dairy investigation must be completed within one year, but may be extended by six months.
In January, Beijing already announced it was investigating alleged anti-competitive practices in relation to spirits such as cognac imported from the EU.
In June, it also launched an “anti-dumping” (selling below cost) investigation into imports of pork and pork products from the European Union, mainly produced in Spain, France, the Netherlands and Denmark.
Author: Lusa
Source: CM Jornal
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