Brussels takes China to the WTO over questionable probe into EU dairy products

The European Commission has initiated the process to challenge China's anti-subsidy investigation into some European Union (EU) dairy exports, arguing that the investigation is based on unsubstantiated claims and insufficient evidence. The Commission is preparing for consultations at the World Trade Organization (WTO) to resolve the dispute amicably. This action follows China's probe into EU subsidies in the production of various dairy and agricultural products, which was seen as retaliation for the EU's proposal to impose tariffs on Chinese electric vehicles due to alleged subsidies. The situation marks the first time the Commission has requested WTO consultations in the early stages of an anti-subsidy investigation. The European Dairy Association has expressed support for the Commission's decision, voicing concerns about the additional administrative burden on EU producers caused by the Chinese investigation.

The European Commission has taken the first steps to challenge China's anti-subsidy investigation into some of the bloc's dairy exports, arguing it is based on "questionable allegations and insufficient evidence" and urging its immediate end. The announcement on Monday morning paves the way for consultations at the World Trade Organization (WTO) to settle the dispute before it escalates any further. The Chinese probe – requested by two state-backed industry groups – was launched in late August by the Commerce Ministry and targets EU subsidies in the production of fresh and processed cheese, blue cheese and other cheese, milk and cream products. Eight member states – Austria, Belgium, Croatia, the Czech Republic, Finland, Ireland, Italy and Romania – came under the ministry's scrutiny. The move was widely seen as a tit-for-tat as it came less than 24 hours after the Commission updated its proposal to slap additional tariffs of up to 36.3% on imports of China-made electric vehicles ...