BEIJING. The Chinese government has launched an investigation into European Union pork imports, marking a strategic shift in its response to the EU’s recent decision to impose tariffs on China-made electric vehicles (EVs). This move, announced by the Commerce Ministry on Monday, is seen as a tactical maneuver to gain leverage in ongoing trade negotiations.
The Chinese Commerce Ministry refrained from mentioning the new EV tariffs directly when it disclosed the anti-dumping investigation into European pork. However, analysts interpret this action as a clear retaliation against the EU’s impending tariffs on Chinese EVs. The investigation will scrutinize various pork products, including fresh and frozen meat, intestines, and other internal organs. It is expected to last for one year, with the possibility of a six-month extension.
China’s decision to target the agricultural sector, rather than imposing a potential 25% duty on gasoline-powered vehicles—a move that would have significantly impacted German automakers like Mercedes and BMW—suggests a calculated approach. This choice may reflect the Chinese government’s awareness of the German auto industry’s public opposition to the EU tariffs and its substantial production footprint in China.
Olof Gill, a spokesperson for the European Commission on trade, emphasized that EU farm subsidies comply with World Trade Organization (WTO) obligations. “We will follow the investigation very closely and intervene as needed to ensure that the Chinese probe complies with WTO rules,” Gill stated.
Chinese officials have criticized the EU’s investigation into subsidies for Chinese EV production, labeling it as “typical protectionist behavior” that violates WTO regulations. The EU plans to enforce provisional tariffs ranging from 17.4% to 38.1% on Chinese EVs, including those exported by foreign brands like Tesla, for four months starting July 4.
EU pork exports to China peaked at 7.4 billion euros ($7.9 billion) in 2020, driven by increased demand after a swine disease outbreak decimated China’s pig farms. However, exports have since declined, reaching 2.5 billion euros ($2.6 billion) last year, with nearly half originating from Spain.
Spanish Economy Minister Carlos Cuerpo cautioned against escalating trade countermeasures, stating, “We must avoid an escalation of trade countermeasures.” Spain’s pork industry association, Interporc, has pledged full cooperation with Chinese authorities, offering to provide all necessary documentation.
Spain’s Minister for Agriculture, Luis Planas, highlighted the recurrent impact of trade disputes on the agricultural sector. “The agricultural industry does not tend to be the source of conflicts but it does end up paying the price often enough,” Planas remarked, referencing the U.S. tariffs on some EU agricultural products in 2019 amid the Airbus subsidy conflict. “I believe that we have both the time and the margin to negotiate and try to avoid this trade conflict,” he added.
As the investigation unfolds, both sides appear poised for complex negotiations, with significant implications for the global trade landscape.
Si Venus L Peñaflor ay naging editor-in-chief ng Newsworld, isang lokal na pahayagan ng Laguna. Publisher din siya ng Daystar Gazette at Tutubi News Magazine. Siya ay isa ring pintor at doll face designer ng Ninay Dolls, ang unang Manikang Pilipino. Kasali siya sa DesignCrowd sa rank na #305 sa 640,000 graphic designers sa buong daigdig. Kasama din siya sa unang Local TV Broadcast sa Laguna na Beyond Manila. Aktibong kasapi siya ng San Pablo Jaycees Senate bilang isang JCI Senator.
