EDA, the European Dairy Association, informs about the next steps in the trade dispute between the EU and China. The EU is now kicking off a consultation request at WTO level in the China dairy probe. As of today, China now has 10 days to reply (acknowledge) the request of consultation and 30 days to engage in discussions with the EU. The consultation phase lasts up to 60 days from today.
If (i) China does not enter into negotiations with the EU within the 30 days; or (ii) if consultations are not positively concluded within 60 days, the EU is then allowed to consider that the consultation phase was infructuous and can request the establishment of a WTO panel The parties can always agree on a deadline beyond 60 days.
“For what we have heard, in the meeting of 19 September 2024 on the CN – EU trade situation, focusing on the EV issue, between EU COM VP Valdis Dombrovskis and CN Minister Wang Wentao, both sides showed willingness to find a solution here before the final EU decision. Nevertheless, the ‘atmosphère’ in the meeting was – again, for what we have heard – very ‘open’: the CN side did not deny a potential link between the EV case and the agri-food probes and EU COM VP Valdis Dombrovskis has raised concerns on the WTO compatibility of the CN probes,” comments EDA Secretary General Alexander Anton. This ‘open’ exchange has already led to a reaction of the CN ministry of commerce sending a shortened questionnaire to all companies before doing the sampling of companies and going into details with ‘sampled’ (normally 3 to 5) companies, id est adding an additional procedural burden to EU dairies.
Anton: “The consultation request at WTO level launched today by the competent services of the EU Commission is hence – if you will – to show that our Union is ready to step up its trade defense. For European cream and cheese, we’re once more a ‘hostage’ of a non-related trade dossier – we count on the EU Commission to make sure that we will not become a collateral damage of the trade tensions between our Union and the People’s Republic of China.”
