The European Commission has requested that the World Trade Organisation challenge China’s anti-subsidy investigation against EU dairy exports.

The Commission said the move was prompted by an emerging pattern of China initiating trade defence measures, based on questionable allegations and insufficient evidence, within a short period of time.

“The Commission is following through on its commitment to firmly defend the interests of the EU dairy industry and the Common Agricultural Policy against abusive proceedings,” it said this week.

It warned China that it is determined to make full use of all “available legal means” to defend EU industry against the abuse of trade defence instruments.

In a letter to Independent Ireland MEP for Midlands-North-West, Ciaran Mullooly, the European Commission for Trade Valdis Dombrovskis said that the Commission will take “all necessary steps” to protect its economy against abuses of trade defence measures.

EU industry

This, he said, includes a challenge against an “unjustified measure” at the World Trade Organisation.

“The European Commission is doing and will continue to do its utmost to defend the interests of the EU industry at technical as well as at political level,” Commissioner Dombrovskis said.

He reiterated that the Chinese investigation is targeting 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 in 2023. Baby formula is not covered by the ongoing investigation,” he said.

Speaking to the Irish Farmers Journal, Mullooly said he is confident that the WTO will uphold the EU’s position, and this dispute can be resolved without further damage to the sector.

“Overall, the EU’s agricultural exports to China are worth between €15-17bn annually, underscoring the significant economic stakes involved in the ongoing trade discussions.”