The European Union on Monday called on the World Trade Organization (WTO) to initiate a dispute settlement procedure in the conflict with China over dairy products.
China launched an investigation last month into EU farm subsidies for certain dairy products.
However, Brussels says in a press release that these subsidies are “fully in line with international rules” and do not harm the Chinese dairy industry.
“The Chinese investigation into EU dairy products is based on questionable allegations and insufficient evidence. That is why we will continue to vigorously challenge this investigation in every way possible and call on China to end it immediately,” said EU Trade Commissioner Valdis Dombrovskis.
The request for consultations to challenge China’s investigation is the first step in the WTO dispute settlement procedure, the commission said.
The EU and China are at loggerheads over alleged state subsidies.
Brussels launched an investigation into subsidies for electric vehicles produced in China last year and has since come up with plans to impose controversial long-term import tariffs.
Beijing accuses the EU of protectionism and has already responded, for example, with investigations into the import of pork and dairy products from the EU.
A meeting between Dombrovskis and Chinese Trade Minister Wang Wentao last week ended without a breakthrough on the issue.
