The European Commission has expressed “concern” over newly announced provisional tariffs imposed by China on dairy product imports from the European Union. These tariffs, ranging from 21.9% to 42.7%, are considered “unjustified” by the Commission.
New Tariffs and EU Response
According to a statement released Monday, the Commission believes China’s investigation leading to these tariffs was based on “questionable accusations and insufficient evidence.” Olof Gill, a spokesperson for the Commission, stated the EU will evaluate the preliminary findings and present a formal response.
The Commission intends to defend the measures against the rules of the World Trade Organization (WTO). Brussels previously brought the initial investigation to the WTO’s attention. Gill affirmed the Commission will “take all necessary measures” to protect EU farmers, producers, and the Common Agricultural Policy (PAC).
China’s Justification
China’s Ministry of Commerce announced the tariffs will take effect Tuesday, alleging that subsidies received by EU dairy producers have caused “substantial damage” to the Chinese dairy industry. The Ministry determined that EU dairy products were “subsidized” and that a “causal relationship” exists between these subsidies and the damage to China’s domestic industry.
The tariffs will be in the form of compensatory deposit duties paid to Chinese customs. Affected products include fresh cheese and curd, processed cheese (grated or powdered), blue cheese, textured cheeses, milk, and cream. Tariffs range from 21.9% for Italian company Sterilgarda Alimenti to 42.7% for some subsidiaries of Dutch company FrieslandCampina.
Spanish companies including Campo de San Juan, CAPSA, Innolact, Lácteos Industriales Agrupados, and Industrias Lácteas de Mollerusa will face a provisional tariff of 28.6%.
What Happens Next?
China has set a deadline of February 21st to conclude its investigation and determine whether the tariffs will become permanent. The Commission will use this time to build its case against the tariffs. It is possible that negotiations between the EU and China could occur to attempt to resolve the dispute. Alternatively, the EU could pursue further action through the WTO dispute settlement mechanism.
Frequently Asked Questions
What products are affected by these tariffs?
The tariffs affect a range of dairy products including fresh cheese and curd, processed cheese (grated or powdered), blue cheese, textured cheeses, milk, and cream.
What is the European Commission’s position on these tariffs?
The European Commission considers the tariffs “unjustified” and believes the investigation on which they are based was flawed, relying on “questionable accusations and insufficient evidence.”
What is the timeline for a final decision on these tariffs?
China has set a deadline of February 21st to conclude its investigation and decide whether to make the tariffs permanent.
How might these tariffs impact international trade relations between the EU and China?
