Commodities

China May Implement Provisional Anti-Dumping Measures on EU Pork Imports, According to Reuters

By Mei Mei Chu and Joe Cash

BEIJING – China may soon implement provisional anti-dumping measures on pork imports from the European Union following a year-long investigation that commenced on June 17, as announced by the commerce ministry.

The probe targets EU pork and its by-products, primarily focusing on suppliers from Spain, the Netherlands, and Denmark. This investigation seems to be a response to the EU’s decision to impose anti-subsidy duties on Chinese electric vehicles.

The inquiry will center on pork products meant for human consumption, including fresh, chilled, and frozen whole cuts, as well as offal items like pig intestines, bladders, and stomachs. It is projected to conclude by June 17, 2025, although it could be extended by an additional six months if necessary.

According to He Yadong, a spokesperson for the commerce ministry, provisional anti-dumping measures could be implemented if the preliminary investigation concludes that dumping has occurred and has adversely affected the domestic industry.

Since the European Commission’s announcement on June 12 to impose anti-subsidy duties of up to 38.1% on imported Chinese cars, global food companies have been on high alert for possible retaliatory tariffs from China.

In 2023, China imported pork valued at $6 billion, with over half sourced from the EU, as per Chinese customs data. Spain was the largest EU supplier of pork to China, followed by the Netherlands, Denmark, and France. The potential measures could significantly impact Europe, as a substantial portion of EU pork exports to China consists of items like pig ears, noses, feet, and offal, which are seldom consumed by Europeans.

Alberto Herranz, director of Spain’s pork producers’ association Interporc, noted that the Spanish pork sector is prepared to pivot to alternative markets. Meanwhile, Spanish Economy Minister Carlos Cuerpo emphasized the need to strike a balance between promoting free trade and safeguarding strategic interests, stating, "While we want to avoid a trade war, we must also steer clear of a subsidy race. We need to find a fair competitive point."

The investigation was initiated following a complaint from the China Animal Husbandry Association on behalf of the domestic pork industry. Observers believe that China may turn to other pork suppliers in Russia, which began exporting pork to China in February, as well as Brazil, Argentina, and the U.S. to compensate for a potential loss of European imports.

An executive from a major Chinese pig farm mentioned that China’s domestic pig production is sufficient to meet demand and that any shortfalls would quickly be filled by local sources.

China, as the world’s leading producer and consumer of pork, is also grappling with an oversupply of pigs, putting downward pressure on domestic pork prices. Currently, imports account for about 5% of China’s total pork supply.

Typically, governments impose anti-dumping duties on imported products to protect domestic industries when there are indications that those products are being sold below production costs.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker