China Imposes Anti-Dumping Duties on EU Pork Imports

TAIPEI, Taiwan (AP) — China has announced the imposition of provisional anti-dumping duties ranging from 15.6% to 62.4% on imports of pork from the European Union, further exacerbating ongoing trade tensions between Beijing and the 27-member EU economic bloc.

Preliminary Determination of Dumping

In a statement released by the Commerce Ministry, China indicated that a preliminary investigation identified Europe as engaging in dumping practices with its pork and pig by-products. Dumping is defined as the sale of goods at prices lower than either their production costs or their domestic market prices in the exporting country.

Impact on Domestic Industry

The Chinese government claimed that the pricing of EU pork was inflicting “substantial damage” on its domestic pork industry, although it did not elaborate on this assertion. As of September 10, China will begin collecting cash deposits from EU pork exporters, although the ministry left unclear whether these deposits would be refundable and under what conditions.

Background of Trade Disputes

This latest move comes amidst a series of trade disputes between China and the EU spanning multiple industries. China’s inquiry into EU pork imports was initiated in June of the previous year, shortly after the EU imposed provisional tariffs on electric vehicles manufactured in China. The situation escalated when Beijing also enacted anti-dumping duties on European brandy, including the notable French cognac, though some major producers received exemptions.

Scope of the Investigation

The investigation includes a variety of products, such as fresh and frozen pork meat, intestines, and other internal organs. Countries like Spain, the Netherlands, and Denmark are expected to bear the brunt of these new duties, significantly impacting their exports to China.

Decline in Export Volumes

EU pork exports to China peaked at €7.4 billion ($7.9 billion) in 2020, primarily due to Beijing’s reliance on foreign supplies to meet domestic demand following a devastating swine disease that impacted local pig farms. However, these figures have since plummeted, with exports falling to €2.5 billion ($2.6 billion) in 2023—nearly half of which originated from Spain.

Ongoing Investigations

In addition to pork, China is currently investigating potential dumping practices related to European dairy products, suggesting that trade tensions may escalate further in the near future.