EU challenges China at WTO over dairy subsidies amid trade tensions
On Monday, the European Commission approached the World Trade Organization (WTO) regarding China’s actions concerning EU dairy subsidies. According to the EC, the subsidies comply with international rules. Beijing initiated an investigation the day after announcing new tariffs on Chinese electric cars.
For the first time, the European Union has approached the WTO at such an early stage of the proceedings. Just a month ago, China initiated an investigation into European dairy subsidies on August 21. On August 20, the EC announced planned new tariffs on subsidized Chinese electric vehicles.
Brussels now wants to challenge the proceedings initiated by China against European goods.
The EU's action was prompted by an emerging pattern of China initiating trade defence measures, based on questionable allegations and insufficient evidence, within a short period of time, the EC's statement reads.
In its investigation, Beijing is examining EU subsidies for milk, cream, and cheese from the Common Agricultural Policy. The investigation concerns EU subsidies and some national and regional programs. "The Commission is confident that these subsidy schemes are fully in line with international rules and are not causing injury to the Chinese dairy industry," the EC emphasized.
Brussels requested consultations on Monday, marking the first step in the dispute resolution proceedings before the WTO. Next, the EU may ask the WTO to establish a panel to decide on this investigation.
Import of pork and cognac. China's investigation
In recent months, China has also initiated an anti-dumping investigation related to the import of European pork and French cognac.
The European Commission seeks to impose up to 35% tariffs on Chinese-manufactured electric vehicles. These will be paid along with the existing 10% import tariff. Member states will vote in the coming weeks to approve the decision. China is still negotiating with the EU.
