Today, the European Commission initiated a consultation request at the World Trade Organization (WTO) to challenge China’s anti-subsidy investigation into certain EU dairy imports. It is the first time the EU has opposed an investigation at its early stage. China’s repeated initiation of trade defence measures based on questionable allegations and insufficient evidence within a short timeframe caused the EU’s decision. EC is committed to protecting the interests of the EU dairy industry and the Common Agricultural Policy (CAP) against unfair proceedings.
“The Commission is doing everything it takes to defend EU dairy producers and the Common Agricultural Policy from the abuse of trade defence instruments. The Chinese investigation on EU dairy is based on questionable allegations and insufficient evidence; therefore, we will continue to challenge it vigorously in all available venues while calling on China to bring it immediately to an end,” said Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade.
China began its dairy investigation on August 21, 2024. The investigation focuses on liquid milk and cream with a fat content higher than 10% and various EU cheese types. It targets subsidies under the EU’s CAP and specific national and regional programmes. The Commission is confident that these subsidy schemes not only comply with international rules but also do not harm the Chinese dairy industry.
The Commission has been closely following the investigations from the beginning and fully cooperating with exporting EU producers and Member State authorities. EC is determined to use all available legal means to defend the EU industry against the abuse of trade defence instruments. The consultations requested by the EU today represent the first step in WTO dispute settlement proceedings. If they do not lead to a satisfactory solution, the EU could request that the WTO set up a panel to decide on this investigation.
