The Chinese government is retaliating against the European Union by launching an anti-dumping investigation into pork imports from Europe, following the EU’s announcement of plans to impose provisional tariffs on China-made electric vehicles. Despite not directly mentioning the EV tariffs in their announcement, China’s move is widely seen as a response and a way to gain leverage in potential trade negotiations. This investigation is expected to cover various pork products and could last up to a year with a possible six-month extension.
EU’s farm subsidies, which Chinese officials have criticized as being protectionist and non-compliant with WTO rules, are also being closely monitored in light of the Chinese investigation. EU exports of pork products to China hit a peak of 7.4 billion euros in 2020 but have since declined to 2.5 billion euros in 2021. Spain is a significant contributor to this total, with almost half of the exports coming from the country. Spanish officials are urging for negotiations to avoid escalating trade conflicts and emphasizing the importance of collaboration with Chinese authorities.
The potential imposition of a 25% duty on gasoline-powered vehicles with large engines by China could have impacted German automakers such as Mercedes and BMW but has not been implemented as of now. The German auto industry is a major player in the Chinese market, and the EU tariffs on Chinese cars were described as a step away from global cooperation by the head of Germany’s auto association. The risk of a global trade conflict is seen as escalating due to these measures, highlighting the importance of finding a resolution through negotiations.
The European Commission has assured that EU farm subsidies comply with WTO obligations and will closely monitor the Chinese investigation into pork imports to ensure compliance with international trade rules. The EU’s decision to impose provisional tariffs on Chinese electric vehicles for four months starting in July has sparked concerns about further trade conflicts. These tariffs apply to vehicles from both Chinese and foreign brands, including Tesla, and aim to address unfair competition due to subsidies given to the Chinese electric vehicle industry.
Spanish officials have expressed willingness to collaborate with Chinese authorities and avoid trade conflicts in the agricultural sector, emphasizing the potential negative impact on the industry. Minister of Agriculture Luis Planas believes there is still room for negotiation to prevent any escalation of trade tensions, recalling previous trade conflicts such as the US tariffs imposed on EU farming products in 2019. Spanish pork industry associations are prepared to cooperate with Chinese authorities and provide any necessary documents to ensure a smooth resolution to the investigation into EU pork imports.
