China will not conclude its anti-dumping investigation into EU dairy imports until at least early next year as talks are set to continue in September.
In response to China’s decision this week to extend its probe to February, the European Dairy Association (EDA) said it was not surprised by the decision given Chinese officials are due to make “technical visits” to Belgium and the Netherlands next month, as well as hold talks with the European Commission (EC).
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China kicked off its investigation in August last year to ascertain whether the EU was guilty of exporting dairy products to the Asian country at prices that put local producers at an unfair advantage. The probe followed similar enquiries launched by China for pork and brandy shipped from the European trading bloc that commenced in June and January of 2024, respectively.
The pork investigation was due to last 12 months. However, before the expected conclusion in June this year, China also extended its probe into EU exported pork and pork byproducts by six months to 16 December.
The trade spat with China was sparked by the EU threatening to impose tariffs on imports of Chinese battery electric vehicles (BEV), with the EC claiming “unfair subsidisation” by its Chinese counterparts that risked “causing a threat of economic injury” to local manufacturers.
Xinhua, China’s state-run news agency and official government mouthpiece, reported on Monday (18 August) that the Ministry of Commerce had extended its investigation into ‘certain dairy products’ from the EU to February.
The news service, citing a Ministry statement, said the extension was due to the ‘complexity of the case’.
Similar language emerged from the EDA. Its Secretary General Alexander Anton said in a statement: “This highlights the increasingly complex dynamics of global dairy trade and has required coordinated responses from the industry and policymakers, and EDA will continue to work closely with the EU Commission and the ‘sampled’ dairies that are most involved in the process.”
In October last year, China’s Ministry of Commerce identified Dutch dairy giant FrieslandCampina, Elvir (France) Co. and Sterilgarda Alimenti in Italy as three EU companies that would be subject to a sampling exercise as part of its anti-dumping probe.
Meanwhile, the EC took its case to the World Trade Organization (WTO) last September under a “commitment to firmly defend the interests of the EU dairy industry and the Common Agricultural Policy against abusive proceedings”.
Anton at the EDA said today (20 August) in the statement, when asked for comment and an update on those proceedings by Just Food: “With that, for the very first time in such an early state of the procedure, the EU has given a clear political sign to step up to defend our European interest.
“WTO procedures are not known for speed and so far, we have no signs for any progress at this level.”
Just Food asked the EC for an update on the status of proceedings regarding China’s probe into dairy imports from the bloc.
Olof Gill, the EC’s spokesperson for trade and agriculture, responded via a statement today: “The Commission takes note of China’s decision.
“In a broader sense, the Commission reiterates its previously stated position that this investigation is based on questionable allegations and insufficient evidence and thus is not in line with WTO rules for initiating an investigation.”
Gill added: “The EU takes with utmost seriousness any unfair use of trade-defence instruments against any sector of our economy. The Commission is following all China’s investigations very closely, in full cooperation with our exporting producers and member state authorities
“We are doing everything it takes to defend EU industry – farmers and exporters – as well as the Common Agricultural Policy, from the abuse of trade-defence instruments.”
When China kicked off its dairy import investigation last August, Xinhua said the probe was launched on behalf of the Dairy Association of China and the China Dairy Industry Association.
The news agency suggested at the time that the review would include fresh cheese, curd and blue cheese from the EU. It was expected that the enquiry would conclude on 21 August of this year but could be extended for six months “under special circumstances”. China has now done just that.
