- The Chinese had already initiated anti-dumping procedures on imports from the EU to the CN of spirits (brandy/cognac) in January 2024 and pork in June 2024 (both procedures are still ongoing).
- During the EDA meeting, together with Commissioner Janusz Wojciechowski, at the Chinese Embassy in Brussels on 17 May 2024, the Chinese authorities indicated that they should also consider addressing other agri-food exports, including dairy products.
- On August 21, China launched an anti-subsidy investigation into certain imported dairy products.
- EU High Representative Josep Borrell indicated yesterday at a discussion forum in Spain that "Europe is heading towards a full-blown trade war with China".
Read more
China threatens to limit EU pork imports. Electric cars in the background
Now the press is reporting on the launch of a consultation on subsidies, among other things complaining about the compensatory subsidy schemes supporting EU dairy farming mainly through the CAP – most likely similar to what happened in the wine sector in 2013.
The scope covers mainly EU cheeses (0406 1000, -2000, -3000, -4000, -9000, but also 04015000 (milk and cream, not concentrated).
Based on the evidence provided by the applicants and the preliminary assessment by the Ministry of Commerce, the applicants’ combined production of the relevant dairy products accounted for a majority of the total domestic production of the like products in 2020, 2021, 2022, 2023 and the first quarter of 2024. This meets the requirements set out in Articles 11 and 13 of the “Countervailing Regulations of the People’s Republic of China” for the domestic industry to submit an application for a countervailing duty investigation.
Read more
Milk imports to China on a downward trend. China focuses on domestic development of the industry
The application indicates that the products under investigation have received grants from the EU and its Member State governments, comprising a total of 20 grant programmes from which the EU dairy industry could benefit. After preliminary assessment, the Ministry of Commerce considers that the application contains the necessary information and evidence required to initiate a countervailing duty investigation under Articles 14 and 15 of the "Countervailing Duty Regulations of the People's Republic of China".
Based on the results of the aforementioned review and pursuant to Article 16 of the "Countervailing Regulations of the People's Republic of China", the Ministry of Commerce has decided to initiate a countervailing duty investigation on relevant dairy products imported from the EU from 21 August 2024 onwards.
Investigation and Investigation Period: The subsidy investigation period is from April 1, 2023 to March 31, 2024, while the industrial injury investigation period is from January 1, 2020 to March 31, 2024. The investigation is to begin on August 21, 2024 and is normally concluded on the earlier of August 21, 2025. In special circumstances, this period may be extended by 6 months.
Scope of the investigation: Relevant dairy products imported from the EU.
Name of products tested: Some dairy products.
Product description: Suitable dairy products include, but are not limited to, fresh cheese (including whey cheese) and curd, processed cheese (whether or not grated or powdered), blue cheese and other textured cheeses produced by Penicillium roqueforti, other cheeses not otherwise specified, milk and thin cream (containing more than 10% fat, by weight), not enriched or sweetened with sugar or other sweetening matter.
These products are classified under the following customs codes in the "Schedule of Import and Export Tariffs of the People's Republic of China": 04015000, 04061000, 04062000, 04063000, 04064000, 04069000.
In its application, the applicant claimed that the EU and its Member State governments had provided 20 subsidies to the relevant dairy industry (companies) in the EU. After preliminary investigation and taking into account the allegations made by the EU government in the pre-imitation consultation, the Ministry of Commerce decided to investigate the following items of subsidy in this investigation:
Grant programmes under the EU Common Agricultural Policy:
- Voluntary support linked to production and income support linked to production
- Basic Payment System and Basic Income Support for Sustainable Development
- Greening and eco-programs
redistributive payments and complementary redistributive income support for sustainable development - Payment for young farmers and additional additional income support for young farmers
Related subsidies for storage of dairy products - A range of interventions in rural development
Grant programmes implemented by EU member states
- Ireland – Dairy Equipment Grant Scheme
- Austria – Liquidity Subsidy Program
- Austria – Bridging Loan Guarantee Scheme
- Belgium – Flemish Bridging Loan Program
- Italy – Livestock Insurance Subsidy
- Italy – Subsidy for dairy logistics
- Croatia – Subsidies for livestock producers
- Croatia – Subsidies for raw milk purchase costs
- Finland – Damage subsidies for agricultural producers
- Finland – Subsidies for costs in the agriculture and aquaculture sectors
- Finland – Subsidies to milk producers' costs
- Romania – Administrative subsidies for farm animals
- Czech Republic – Subsidies for damages for agricultural producers
Interested parties or interested countries (regions) may apply to the Trade Control Investigation Bureau of the Ministry of Commerce to participate in the anti-subsidy investigation within 20 days of the publication of this notice. Interested parties or interested countries (regions) should provide information in accordance with the reference registration form, such as basic identification data, the quantity and value of the products being investigated exported or imported to China, the quantity and value of the same type of products produced. The reference registration form can be downloaded from the website of the Trade Control Investigation Bureau of the Ministry of Commerce.
Interested parties or interested country (region) registered to participate in this anti-subsidy investigation shall submit an electronic version through the Trade Remedies and Investigations Information Platform (https://etrb.mofcom.gov.cn), while simultaneously submitting a written version in accordance with the requirements of the Ministry of Commerce. The electronic version and the written version shall be consistent in terms of content and format.
According to Article 21 of the Countervailing Provisions of the People's Republic of China, if an interested party or government of the countries (regions) concerned fails to provide truthful information or submits required documents, or if it fails to provide necessary information within a reasonable time, or if it obstructs the investigation in any way, the Ministry of Commerce may make findings based on the facts available.
