The European Commission is “analyzing” the opening of an investigation by China into so-called anti-dumping duties on EU pork and its by-products.
China’s Commerce Ministry launched the investigation yesterday (June 17), reportedly in retaliation for the European Commission’s “preliminary” notification last week to impose tariffs on imported Chinese battery electric vehicles (BEV).
When submitting that proposal, the EC concluded after investigation that the BEV “value chain in China benefits from unfair subsidies, which poses a threat of economic damage to BEV producers in the EU”.
Olof Gill, the EC’s trade and agriculture spokesman, was questioned yesterday at a press conference about the bloc’s response to China’s EU pork probe, which the country’s trade ministry said could take up to a year take to complete it.
“The Commission notes the decision of the Chinese government to launch an anti-dumping investigation into European imports of pork and pig by-products. The committee is now analyzing the application,” Gill said.
“We will closely monitor the procedure in coordination with EU industry and our Member States. And we will intervene where necessary to ensure that the investigation fully complies with all relevant World Trade Organization rules.”
The infighting between the EC and China has raised concerns about a trade war, which could financially hurt not only EU pork processors and suppliers, but also electric vehicle exporters in China if tariffs are imposed.
Denmark, for example, exported $556 million worth of pork to China last year, according to the industry’s representative body, the Danish Agriculture and Food Council, which said it is “deeply concerned about the prospects of a trade conflict.”
And a similar organization in Spain – the White-Capped Pork Agri-Food Interprofessional, or Interporc – said the country shipped more than 560,000 tonnes of pork and processed pork products to China in 2023, worth 1.22 billion euros.
Ulrik Bremholm, president of the Danish Agriculture and Food Council, expressed his concerns in a statement Just eat.
“As a small open economy, Denmark has always benefited from free trade with other countries. A trade war only has losers,” said Bremholm.
“The Danish meat industry will be hit incredibly hard by potential Chinese restrictions on European meat and I would therefore urge all parties involved to consider the implications for production and food security if the situation escalates.”
In the statement, the Council stressed the need to “de-escalate the situation”, adding that a potential trade war between the EU and China would be “catastrophic”.
Interporc called for “understanding in trade relations” between the two sides to avoid a trade conflict and said it was open to providing China with all the documentation it needs to refute the anti-dumping accusations.
“With absolute respect for the work of the European, Spanish and Chinese authorities, which are responsible for regulating trade relations, the Interprofessional, which unites the entire pork chain and the associations of the meat industry, expresses the wish that they maintain good harmony stays. in relationships,” Interporc said in a statement on its website.
Putting forward the duty proposals on electric vehicles from China on June 12, the EC said its investigation “also examined the likely consequences and impact of measures on importers, users and consumers of BEVs in the EU”.
It added: “The Commission has contacted the Chinese authorities to discuss these findings and explore possible ways to resolve the identified issues in a WTO-compliant manner.”
If no “effective solution” is found, the EC proposes to impose import duties on BEVs ranging from 17.4% to 38.1% from July 4.
EC spokesman Gill said yesterday that the investigation was “fact-based” before starting the so-called disclosure step with China.
“The most important thing to maintain here is that China and Chinese companies enjoy their fully respected procedural rights to participate in the investigation,” he said.
“And they have legal standing both in the EU courts and in dispute settlement at the WTO. So that is the right and appropriate mechanism for China to make its views known regarding our investigation.”
“Stalemate emerges as China weighs pork tariffs on EU exports” was originally created and published by Just Food, a brand owned by GlobalData.
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