An Irish MEP has called for urgent action on the looming trade conflict between the European Union and China which he said “poses a significant threat to Irish farmers”.
The comments follow a recent decision by Chinese authorities to open an anti-subsidy investigation into dairy products imported from the EU.
This move appears to be a response to the EU Commission’s move towards imposing tariffs on Chinese-made electric vehicles (EVs).
In June, China said that an anti-dumping investigation would be launched into pork products originating from the EU.
Farmers
Independent Ireland MEP Ciaran Mullooly will raise his concerns about the impact of the trade tensions on Irish farmers during a meeting of the EU Parliament Committee on Agriculture and Rural Development (AGRI)
He said that the potential impact on Ireland’s dairy sector, which is the largest exporter of dairy products to China among all EU member states, could be devastating.
In 2022, Irish agri-food exports to China were valued at €722 million, with dairy products alone accounting for approximately €400 million.
Mullooly noted that this includes significant exports to China’s “vast baby formula market” which he said is “a crucial area of demand for Irish dairy”.
At present, the Chinese complaint relates to a subsector of dairy products, such as cheeses, milk, and creams intended for human consumption.
Impact
Mullooly warned that the outcome of the Chinese investigation “could result in severe restrictions on Irish dairy exports, jeopardizing the livelihoods of countless Irish farmers and the broader agricultural sector”.
“Irish farmers stand to lose the most if this trade conflict is not resolved quickly.
“With €461 million worth of Irish dairy exports to China in 2023 alone, we are the most vulnerable member state in this escalating trade war.
“The root of this conflict lies in the EU’s decision to impose tariffs on Chinese electric vehicles—a move that does not even have the full backing of the French and German car manufacturers it was intended to protect,” he said.
MEP Mullooly has written to EU Trade Commissioner Valdis Dombrovskis, urging him to enter into urgent negotiations with his Chinese counterpart.
He said that the aim of these talks would be to de-escalate the situation and prevent any further harm to the agricultural sector, which is already facing multiple challenges.
“The Chinese market is critical for the EU’s dairy industry, with total trade valued at €1.7 billion.
“It is imperative that we resolve this issue before it spirals into a full-blown trade war, with Ireland bearing the brunt of the damage,” Mullooly said.