The European Commission has launched a consultation request to the World Trade Organisation (WTO), to challenge China’s anti-dumping investigation into European Union subsidies for certain dairy products.
It marked the first time the EU has taken such action at the start of an investigation, rather than waiting for a decision over trade measures against the bloc.
According to the EC, the subsidy schemes under investigation by Beijing are fully in line with international rules and are not causing injury to the Chinese dairy industry.
Trade tensions between Brussels and Beijing appear to be deteriorating, with China opening an anti-dumping investigation into EU subsidies for certain dairy products. https://t.co/2zit16HsFl
— Brussels Signal (@brusselssignal) August 21, 2024
The move by the EC was in direct response to China’s “questionable allegations and insufficient evidence”, it said.
“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 said in a press release.
According to Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade, the nove was aimed at “doing everything it takes to defend EU dairy producers and the Common Agricultural Policy from the abuse of trade defence instruments”.
The EC said it planned to confront China “in all available venues” and urged Beijing to “bring it [investigation] to an immediate end”.
The body also announced it would request the WTO to establish an adjudication panel if consultations fail to yield what it called a satisfactory outcome.
The EU’s request for consultations marked an initial step in the WTO dispute settlement process, which typically begins with a mandatory 60-day consultation period.
Trade tensions between Brussels and Beijing continue to worsen, following the EU’s recent imposition of tariffs on Chinese electric vehicles.
