The bitter struggle between the EU and China over investigations into sensitive economic sectors continues. Brussels has presented a consultation before the World Trade Organization (WTO) to clarify whether Beijing’s investigation into EU dairy products is well-founded. And the European Commission considers the arguments on which the Asian giant has initiated this procedure to be questionable.
The EU and China are going through a period of tense trade relations. The European Commission has opened an investigation into imports of electric vehicles from China, considering that they are equipped with subsidies which constitute dumping and unfair competition. In response, Beijing launched an investigation into imports of pork, dairy products and brandy from the EU. But in the latter case, it ruled out applying additional tariffs.
At this stage, the Community executive took action considering that China had implemented protective trade measures using dubious arguments and without providing all the necessary evidence. With this move, Brussels is trying to defend the interests of the European dairy sector against procedures that could prove abusive.
The consultation presented by Brussels on Monday constitutes the first step in the WTO dispute settlement procedure. If it is not satisfied with the resolution, the Community executive could request the creation of a special group to the WTO to decide on this investigation.
The European Commission’s Vice-President for Economic Affairs, Valids Dombrovskis, explained that “the Chinese investigation into EU dairy products is based on “dubious allegations and insufficient evidence”The European Commission will therefore continue to “vigorously contest this situation in all possible cases, while calling on China to put an immediate end to it”.
The EU executive and Beijing have spent months of negotiations to reach common ground on the investigations that both sides have undertaken into their respective imports. Brussels has opened an investigation against Chinese electric vehicles, but also against the automotive sector. solar panels, wind and health products. China, for its part, has done the same with EU dairy products, pork and brandy.
The Chinese executive has criticised Brussels’ proposal to impose tariffs of up to 36% on imports of electric vehicles from China. “protectionist” and “witch hunt”, despite the fact that the European Commission defends that China applies “unfair” subsidies, which give its companies a competitive advantage on the Community market, which can sell at prices lower than those of the market.
This week, EU countries will vote on whether to support Brussels’ tariff proposal or withdraw the measure. France and Italy on one side, Spain and Germany on the otherrespectively, must present their approximations. A blocking majority of 15 member states and 65% of the EU population would be needed to cancel the tariff proposal. The vote could be postponed until next week.
