EU takes WTO action over China's decision to investigate dairy subsidies
The European Commission (EC) on Monday took its case to the World Trade Organisation (WTO), challenging an investigation launched by China into subsidies on some of its dairy products.
„The Commission has today submitted a request for consultations to the World Trade Organisation challenging a subsidy investigation launched by China against imports of certain dairy products from the EU,– the EC said in a statement.
„The European Commission is making every effort to protect EU dairy producers and the Common Agricultural Policy from abusive trade defence measures“, said Valdis Dombrovskis, the EU's Trade Commissioner.
He added that China's investigation into EU dairy products „is based on questionable assumptions and insufficient evidence“.
Beijing announced last month that it was launching an investigation into European Union (EU) subsidies on some dairy products exported to China.
The investigation will cover imported dairy products, including fresh cheese and cottage cheese, mouldy cheese, some milk and cream.
The investigation on dairy products is one of a number of Chinese investigations into EU trade practices, including an anti-dumping investigation launched in June on pork imports.
The announcement comes a day after the bloc said it plans to impose import duties of up to 36% on Chinese electric cars for five years.
This is the first time the EU has decided to challenge an investigation at its initiation stage. The EU's action was prompted by China's imposition of trade defence measures at short notice on the basis of questionable assumptions and insufficient evidence.The consultations requested by the EU are the first step in WTO dispute settlement procedures. If a satisfactory solution is not found at this stage, the EU could request the WTO to establish a panel to rule on the investigation.