The European Commission has formally challenged China’s investigation into EU dairy products at the World Trade Organization (WTO). This action comes in response to China’s probe, which was initiated following the EU’s imposition of import tariffs on Chinese electric vehicles.
This marks a significant move for the EU, as it is the first time the bloc has sought intervention at the outset of an investigation rather than waiting for potential trade measures to emerge. The Commission expressed concern over what it describes as a pattern of China launching trade defense measures based on “questionable allegations and insufficient evidence.”
According to the Commission, the WTO proceedings will begin with a mandatory 60-day consultation period between the parties involved. If these consultations do not yield a satisfactory resolution, the EU intends to request the establishment of an adjudicating panel at the WTO, a process that typically takes over a year to reach a conclusion.
China’s investigation, which commenced on August 21, targets various EU dairy products, including liquid milk, cream with a fat content exceeding 10%, and multiple cheese types. The European Commission remains confident that its dairy subsidy schemes comply with international regulations and do not harm China’s dairy sector.
In July, the EU imposed provisional duties on Chinese-built electric vehicles, and its members are expected to vote soon on final tariffs that could remain in place for up to five years. Additionally, China is currently conducting anti-dumping investigations into EU brandy and pork products.