Beijing Imposes 42.7% Provisional Duty on EU Dairy Imports, Citing Domestic Industry Protection
China has announced the imposition of provisional anti-subsidy duties on dairy products imported from the European Union, citing harm to its domestic dairy sector. The duties, which range from 21.9% to 42.7%, will take effect on December 23. This decision follows a year-long investigation that revealed EU dairy products received subsidies detrimental to Chinese producers. The move adds tension to the already strained trade relations between China and the EU, which have been under scrutiny since the European Commission initiated an anti-subsidy probe into Chinese electric vehicles earlier this year.
Details of the Anti-Subsidy Duties
The Chinese commerce ministry has set the anti-subsidy duties based on the findings of its investigation into EU dairy imports. The lowest duty rate of 21.9% will apply to Italy’s Sterilgarda Alimenti SpA, while FrieslandCampina Belgium NV and FrieslandCampina Nederland BV will face the highest rate of 42.7%. Additionally, 12 French companies will incur duties of 29.7%, and approximately 50 other firms from Italy, France, and Germany will be subject to a rate of 28.6%. The ministry’s announcement indicates a significant impact on EU dairy exporters, as China is a crucial market for these products.
Impact on EU Dairy Exports
China is the second-largest market for European dairy exporters, following New Zealand. According to customs data, the EU ranks as China’s second-largest supplier of dairy products. In 2023, China was the second-largest destination for skimmed milk powder exports from the EU and the fourth-largest market for butter and whole milk powder. The imposition of these duties could have far-reaching effects on the EU’s dairy industry, potentially leading to reduced exports and financial losses for affected companies.
Context of Trade Relations
The announcement of these duties comes amid heightened tensions in trade relations between China and the EU. Earlier in 2023, the European Commission launched an anti-subsidy investigation into electric vehicles manufactured in China, prompting Beijing to initiate its own investigations into various EU imports, including dairy products. This tit-for-tat approach has raised concerns about escalating trade frictions between the two economic powers, as both sides navigate their respective trade policies.
China’s Stance on Trade Remedies
In light of the recent developments, a representative from the commerce ministry’s trade remedy department emphasized that China has been cautious in implementing trade remedy measures. The official noted that no new investigations targeting the EU have been initiated this year, with only three anti-dumping cases resulting in final rulings. The ministry reiterated its commitment to addressing trade frictions through dialogue and consultation, aiming to maintain cooperation in economic and trade relations with the EU.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
