Eucolait supports the move by the European Commission to launch WTO consultations with respect to the Chinese anti-subsidy investigation into EU cheese and cream exports. The announcement made today constitutes the first step in WTO dispute settlement proceedings.
It is the first time that an anti-subsidy case is challenged at this very early initiation stage. The investigation was launched by China just a month ago on 21 August 2024. We appreciate this strong signal of support from the Commission to the European dairy sector.
China is one of the most important markets for EU dairy products and we are confident that our dairy trade with China takes place in full compliance with international trade rules. It is therefore vital that this unfounded investigation is challenged in a timely manner. The payments received by European producers are largely decoupled and have no established link with exports. There is no indication that any of the support farmers receive under the Common Agricultural Policy would benefit processors or exporters of cheese or cream. There is also insufficient evidence of any material damage to the Chinese domestic industry resulting from imports of these products from Europe.
The WTO consultation phase can last up to 60 days, starting today. If not resulting in the desired outcome, the establishment of a WTO panel can be requested. Eucolait stands ready to co-operate with the Commission both in the context of the WTO proceedings and the ongoing anti-subsidy investigation.