- China has concluded its investigation into EU subsidies in the dairy sector.
- The new tariffs will reach a maximum of 11.7%, and 9.5% for some companies.
- They will cover a wide range of products: cheese, milk, and cream.
- The previous provisional tariffs of 21.9–42.7% will be reduced.
Anti-subsidy docking and Beijing’s decision
China has concluded an anti-subsidy investigation into financial support for agricultural producers in the European Union, Euractiv reports, citing a document at its disposal. The investigation was launched in August 2024 and focused on assessing whether the subsidy system, including mechanisms operating under the Common Agricultural Policy and additional payments for, among other things, pro-environmental measures, may have led to a distortion of competition in the Chinese market.
As a result of the investigation, the authorities in Beijing decided to introduce new tariffs on imports of selected dairy products from the EU. The maximum duty level was set at 11.7%, a significant change from the temporary measures previously in place.
Extent of the duties and consequences for exporters
The new regulations cover a wide range of dairy products, including various categories of cheese, as well as milk and cream. According to the published list, the standard rate of 11.7% will apply to most EU exporters. At the same time, more than 50 companies have been qualified for the lower duty threshold of 9.5%. This group includes Lactalis, Arla and Zanetti, among others.
At the same time, Beijing’s decision marks a reduction in the much higher provisional tariffs, which were introduced the previous month and ranged from 21.9% to 42.7%. Despite the reduction in tariffs, the situation remains tense. EU agricultural organisation Copa-Cogeca highlighted on social media that European farmers and their competing products are becoming part of a wider trade conflict, while calling for a diplomatic and constructive solution to the dispute.
