Minister for Agriculture, Food and the Marine Charlie McConalogue is to engage with the European Commission following a decision by China to open a subsidy investigation into EU dairy imports.
The Ministry of Commerce of China yesterday (Wednesday, August 21) announced that it has begun an investigation into subsidies paid to European dairy farmers.
The investigation includes 20 EU subsidy schemes, including 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).
Dairy
In a statement to Agriland, Minister Charlie McConalogue said that he is aware of the announcement by China of its intention to initiate an anti-subsidy investigation into European dairy exports.
“I will be engaging with the EU Commission to ensure that it has all of the data necessary in so far as Ireland is concerned to resolve any issues raised in the proposed investigation.
“In this regard I am satisfied that European and Irish dairy exports are fully compliant with World Trade Organisation Rules,” he added.
Minister McConalogue is due to lead a government trade mission to China in the coming weeks.
The value of overall Irish dairy exports to China stood at €420 million in 2023, a drop of 5% on 2022 levels.
Currently, it is understood that the Chinese investigation relates to a subsector of dairy products, including liquid milk with fat content exceeding 10% and different types of cheeses.
According to the notice issued by the Chinese authorities it is believed that the scope of the investigation will not include powdered milk.
The investigation is due to last one year but the authorities said that this may be extended for up to six months “under special circumstances”.
China
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.