China’s threat of a trade war in the dairy sector to be tested at the WTO

The EU will not accept the tit for tat relative to its own import tariffs on electric vehicles to impact other areas. China’s latest threat of tariffs on dairy products will be tested in the global trade organization, WTO, according to Just-Food.

Last month, Chinese authorities announced that they would include dairy products in the ongoing trade conflict with the EU, in which aspect the EU initially announced import tariffs on Chinese electric vehicles.

Xinhua, the Chinese state news agency, reports that China is launching an investigation into subsidies under the EU Common Agricultural Policy (CAP) as well as certain national and regional programs. The investigation will consider certain dairy products from the EU, to include fresh cheese, curds, and blue cheese, and the investigation period is set for between April 1, 2023, and March 31, 2024 – according to the Xinhua report.

This threat is now prompting the European Commission to refer China to the WTO, considering it a necessity to defend the EU dairy industry and agricultural policy against abusive proceedings. Valdis Dombrovskis, EU Trade Commissioner, explains that the Chinese are basing the threat on dubious claims and insufficient evidence, and that the EU will challenge the measures in all possible ways. This information is provided by Just Food (global food industry media).

Last year, China accounted for approximately 9.5 percent of EU’s dairy exports. The study from China appears at the request of the Chinese organizations, the Dairy Association of China and the China Dairy Industry.