China’s Commerce Ministry announced on Wednesday the launch of an anti-subsidy investigation into certain dairy products imported from the European Union (EU), effective from August 21.
Initiation of the Investigation
The decision comes after the Dairy Association of China and the China Dairy Industry Association submitted an application in July on behalf of the domestic industry. Concerned about the impact of EU dairy imports on local producers, these associations prompted the ministry to take action.
Consultations with the EU
On August 7, the ministry requested a consultation with the EU government regarding the impending probe. This consultation was held a week later, demonstrating a swift response from both parties.
Focus of the Probe
The investigation targets specific dairy products originating from the EU, including fresh cheese, curd, and blue cheese intended for human consumption. The subsidy practices under scrutiny cover the period from April 1, 2023, to March 31, 2024.
Assessing Domestic Impact
In addition to examining subsidy practices, the probe will assess any damage to related Chinese industries from January 1, 2020, to March 31, 2024. This analysis aims to determine the extent to which EU subsidies may have affected China’s domestic dairy sector.
Subsidies Under Investigation
A total of 20 EU subsidies are being investigated. These include subsidies from the EU’s Common Agricultural Policy and programs initiated by EU member countries such as Austria, Belgium, Croatia, the Czech Republic, Finland, Italy, Ireland, and Romania.
Timeline and Possible Extension
The investigation is expected to conclude before August 21, 2025. However, the Commerce Ministry noted that it could be extended by an additional six months under special circumstances.
Reference(s):
cgtn.com