China has initiated an anti-dumping investigation into pork imports from the European Union, a move widely seen as retaliatory against the EU’s proposed tariff hike on Chinese-made electric vehicles (EVs).
The EU recently announced a plan to increase tariffs on Chinese EVs from 17.4% to 38.1%, citing unfair competition due to Chinese subsidies for its companies. While these new tariffs are scheduled to take effect on July 4th, they could be rescinded at a later date.
Concerns had arisen that China might retaliate by imposing a 25% tariff hike on gasoline-powered vehicles, particularly impacting the German car sector. However, China’s decision to target the pork industry, which receives half of its European imports from Spain, has surprised many.
The anti-dumping investigation, expected to last one year with a possible six-month extension, will cover fresh and frozen pork meat, intestines, and other internal organs. The EU has stated its intention to closely monitor the investigation, with the European Commission prepared to intervene to ensure compliance with World Trade Organization (WTO) guidelines.
European Commissioner spokesperson Olof Gill emphasized, “Farm subsidies are strictly in line with our WTO obligations.” Additionally, the Spanish pork industry association Interporc has offered its cooperation to facilitate a swift investigation process.
China’s significant increase in pork imports from the EU in 2020, following a swine disease outbreak that severely affected local production, underscores the importance of this investigation. Imports peaked at 7.4 billion euros in 2020 before declining to 2.5 billion euros last year.