China’s ministry of commerce has announced that it has launched an anti-subsidy investigation into dairy products originating from the European Union.

The probe is specifically looking into subsidies supporting cheese exports.

The statement from the Chinese ministry of commerce lists 20 separate subsidies paid to EU dairy farmers, including BISS, greening and young farmer payments. It also calls out the Irish dairy equipment scheme.

Pork imports

In June, China launched an investigation into pork imports from the EU. Both that investigation and the one announced on 21 August have very little to do with EU farm subsidies and everything to do with EU tariffs on Chinese electric vehicles.

China has a history of relying on agricultural imports during trade disputes - during the Trump presidency, it was soybean imports that were targeted when China and US trade relations soured.

The products listed under the investigation specifically are: fresh cheese (including whey cheese) and curd, processed cheese (whether or not grated or powdered), blue cheese and other cheese with texture produced by Penicillium roqueforti, other unlisted cheeses and unconcentrated milk and cream not concentrated or sweetened with a fat content exceeding 10% by weight.

Irish exports

According to Bord Bia, Ireland’s cheese exports in the 12 months to June totalled just over €5m, which is a tiny portion of Ireland’s total dairy exports to China of €771m.

As is the case with the pork investigation, the investigation is scheduled to be completed within a year. There will be no extra restrictions on EU dairy exports until the probe in completed.

Minister for Agriculture Charlie McConalogue is scheduled to lead a trade mission to the country in the coming weeks.