The EU Commission launched a consultation request at the WTO Monday, challenging China’s initiation of an anti-subsidy investigation against imports of certain dairy products from the EU.
Specifically, the EU is challenging what it sees as an emerging pattern of China initiating trade defence measures based on questionable allegations and insufficient evidence, within a short period of time.
China’s dairy investigation, initiated 21 August, targets liquid milk and cream with a fat content higher than 10% and various types of cheese from the EU. The investigation targets subsidies under the EU’s Common Agricultural Policy as well as certain national and regional programmes.
This is the first time the EU has decided to challenge an investigation at its initiation stage. In so doing, the Commission says it is following through on a commitment to firmly defend the interests of the EU dairy industry and the Common Agricultural Policy against abusive proceedings.
The EU executive says it is confident that its subsidy schemes are fully in line with international rules and are not causing injury to the Chinese dairy industry.
The investigations have been very closely by the Commission from the beginning, in cooperation with exporting EU producers and Member State authorities. The Commission says it is determined to make full use of all available legal means to defend EU industry against the abuse of trade defence instruments.
The consultations requested by the EU represent the first step in WTO dispute settlement proceedings. If they do not lead to a satisfactory solution, the EU could request a panel to be set by the WTO to decide on this investigation.
