DII disappointed by Chinese move to investigate EU dairy subsidies
Dairy Industry Ireland (DII), the Ibec association representing the dairy sector, has expressed disappointment at a decision by Chinese authorities to open a subsidy investigation into EU dairy imports.
The Ministry of Commerce of China today (Wednesday, August 21) announced that it has begun an investigation into subsidies paid to European dairy farmers.
Among the 20 EU subsidy schemes cited in the investigation is an Irish scheme which is referred to on a translated version of the ministry’s statement as the “Dairy Equipment Subsidy Scheme”.
It is believed that this refers to the Dairy Equipment Scheme under the Targeted Agricultural Modernisation Scheme (TAMS).
The latest decision of the Chinese authorities is part of ongoing trade tensions between that country and the EU.The European Commission, as part of its own anti-subsidy investigation into the Chinese electric vehicle (EV) industry, announced a draft decision this week to impose countervailing duties on imports of battery (EVs) from China.In June, China said that an anti-dumping investigation would be launched into pork products originating from the EU.
DII, which represents primary and secondary dairy manufacturers including the specialised nutrition sector in Ireland, said it was disappointed by today's announcement from China.
“We are calling on the EU Commission and the Irish government to work quickly to resolve the investigation and ensure that farm families and the industry are not negatively impacted," Conor Mulvihill, director of the association, said.
"The Irish dairy industry produces and exports in full compliance with EU and World Trade Organisation (WTO) rules.
"While any threat of trade disruption is unwelcome, and China is an important market for both EU and Irish dairy, Irish dairy is well diversified in its product mix and destination countries.
"At present, the Chinese complaint relates to a subsector of dairy products, such as cheeses, and most of our cheese exports are directed to the UK and EU markets," he added.
The value of overall Irish dairy exports to China stood at €420 million in 2023, a drop of 5% on 2022 levels.
The Chinese authorities said that its investigation will last one year but may be extended for up to six months “under special circumstances”.
