China has slapped provisional anti-subsidy fees of up to 42.7 per cent on European producers of certain dairy products, including various types of cheese and cream, Beijing’s Ministry of Commerce announced on Monday.
Chinese investigators made a “preliminary determination” – following a 16-month investigation – that the European Union provided “substantial subsidies” to the milk and dairy products industry “through programmes such as the common agricultural policy” and caused “material injury” to Chinese domestic producers, according to a ministry statement.
The provisional tariffs of 21.9 to 42.7 per cent, depending on companies, will be collected starting Tuesday in the form of cash deposits. The fees mark the latest measures following investigations against European agricultural products launched last year by Beijing in retaliation for the EU’s anti-subsidy tariffs on electric vehicles made in China.
In its statement, Beijing reiterated its position that it had been careful with trade investigative tools, as it did not launch any new probes this year and issued final rulings on only three anti-dumping cases, including cognac and pork, while Brussels has issued 18 final rulings and launched 15 new investigations during the same time period.
The European Commission did not reply immediately to a request for comment.
France was China’s second-largest import source of affected dairy products globally – and the largest in Europe – during the first 11 months of this year, with the total shipment worth US$181.7 million, according to Chinese customs data. The import value, however, was only 15 per cent of that from New Zealand, the top source, in the same period.
10:31
The Europe-China trade relationship: deficits, disputes and de-risking
The Europe-China trade relationship: deficits, disputes and de-risking
