China imposes additional tariffs on EU dairy products due to subsidies

ISTANBUL

China on Monday decided to impose additional tariffs on dairy products imported from EU countries, following an investigation into state subsidies on these products.

The Chinese Commerce Ministry said that initial evidence from an investigation into dairy products imported from the EU indicates that the products benefited from subsidies, causing harm to China's domestic industry, and that a causal link has been established between the subsidies and the resulting harm.

The statement announced that, as a countermeasure, an additional customs duty of 21.9% to 42.7% would be imposed on dairy products imported from the EU.

The ministry had launched a subsidy investigation into dairy products imported from the EU in August 2024, following an application by the China Dairy Association and the China Dairy Industry Association on behalf of domestic producers.

The investigation was launched to examine certain dairy products, such as fresh cheese, curd, and Roquefort cheese, imported from EU countries between April 1, 2023, and March 31, 2024, and to determine the damage incurred by the domestic industry during the period covering 2020 to 2024.

It was noted that the investigation would cover 20 subsidies under the EU's Common Agricultural Policy, as well as subsidy programs implemented by member states such as Ireland, Austria, Belgium, and Italy.

The investigation, which was expected to conclude in August this year, was extended by six months, citing the complexity of the case and related regulations.

Previously, on June 17, 2024, China launched a price-dumping investigation into pork and pork by-products imported from the EU.

Following a one-and-a-half-year investigation, it was announced earlier this month that additional customs duties of 4.9% to 19.8% would be imposed on these products for a period of five years.