Trade: EU takes Chinese investigation into its dairy products to WTO

Brussels launched proceedings at the World Trade Organization (WTO) on Monday to challenge a Beijing investigation into EU dairy products, launched after the European Union announced surtaxes on Chinese electric cars.

“Today, the Commission launched a request for consultation with the World Trade Organization (WTO), contesting the opening by China of an anti-subsidy investigation into imports of certain dairy products from the EU,” the European Commission announced in a statement.

The request for consultation is the first step in the WTO dispute settlement procedure. It is part of a standoff over the taxation of Chinese electric cars. The Commission announced on 20 August its decision to impose a five-year surcharge on electric vehicles from China. Beijing is accused of distorting competition by massively subsidising manufacturers on its territory, allowing them to offer lower prices. The EU hopes to protect its automotive industry, which employs 14.6 million people.

In retaliation, Beijing has launched anti-dumping investigations targeting EU pork, dairy products and spirits. The European Commission says the Chinese investigation into EU dairy products is based on “questionable allegations” and “insufficient evidence”. Brussels intends to “firmly defend” European interests against “abusive procedures”.

The introduction of a surcharge on Chinese electric cars is one of the hot topics of the new school year in Brussels. Member States are divided on this procedure supported in particular by France. Spain and Germany have called on member countries to review their position, to avoid a trade war. The powerful German automobile industry is strongly established in China, the world’s largest market, and fears the negative repercussions of a conflict with Beijing. Before becoming definitive, the Commission’s customs duties must be confirmed by a vote of the 27 EU Member States, before the end of October.

Sami Nemli With Agency / Les Inspirations ÉCO