The European Commission has asked the World Trade Organization to intervene in an argument over exports of dairy products to China.
The EU wants the WTO to challenge China’s so-called anti-subsidy investigation which farmers fear could lead to tariffs on European dairy exports to China.
According to Ciaran Mullooly, Ireland exports around €400 million worth of dairy products to China.
The Independent MEP for Midlands–North-West wrote to the EU’s trade commissioner last month urging him to intervene.
The European Commission has now confirmed that it has asked for the WTO to get involved.
It is the first time the EU has contested this kind of anti-subsidy investigation at this early stage.
The European Commission says there is an “emerging pattern of China initiating trade defence measures, based on questionable allegations and insufficient evidence”.
Responding to Ciaran Mullooly, European Trade Commissioner, Valdis Dombrovskis, said that he understood the importance of the issue for Ireland.
“The Commission is fully aware of the importance of this case for the EU dairy sector, and for Ireland in particular. Therefore, my services have been actively participating in this investigation from the beginning.”
The Commissioner also confirmed that he had raised the issue directly with China’s Minister of Commerce, Wang Wentao, in a meeting last week.
China’s anti-subsidy investigation is limited to certain types of milks, covering around one-third of EU dairy exports to China.
The investigation does not cover Ireland’s billion-euro baby formula industry which is expected to be unaffected.
“While exports of dairy products from the EU to China amounted to some €1.7 billion in 2023…this investigation targets certain dairy products, in particular liquid milk and cream with more than 10% fat content and cheeses. Exports of these products amounted to around €500 million in 2023. Baby formula is not covered by the ongoing investigation”, Valdis Dombrovskis confirmed in his letter to Ciaran Mullooly.
The EU’s plea to the World Trade Organization is the first step in so-called WTO dispute settlement proceedings. The European Commission warned that it could escalate the process if it does not “lead to a satisfactory solution”.