China has announced preliminary anti-subsidy tariffs on dairy products imported from the European Union, effective from December 23, 2024. The Ministry of Commerce stated that the investigation, which began in August 2024, found that EU dairy imports were subsidized, causing significant harm to China's domestic dairy industry.
Investigation Details
"The investigating authorities have preliminarily determined that imported dairy products originating from the European Union were subsidised, causing substantial damage to the relevant dairy industry in China, and that there is a causal relationship between the subsidies and the substantial damage," the Ministry of Commerce announced today (22 December).
The tariffs were approved by the Customs Tariff Commission of the State Council and will be implemented as "provisional anti-subsidy duty deposits." The affected products include fresh and processed cheeses, milk, and cream.
Broader Trade Context
This dairy investigation follows similar probes into EU pork and brandy exports to China, which started in June and January 2024 respectively. Last week, China imposed final duties on EU pork for five years, though at reduced rates compared to preliminary tariffs announced earlier.
The Ministry of Commerce had previously set duties of 4.9% to 19.8% on EU pork and pork by-products. These measures are widely viewed as China's response to the European Commission's tariffs on Chinese electric vehicles.
Tariff Rates and Company Impact
According to Reuters, the new dairy tariffs will range from 21.9% to 42.7%. Specific companies affected include Denmark's Arla Foods, owner of the Lurpak butter brand, which faces rates of 28.6% to 29.7%, and Netherlands-based FrieslandCampina, which will be subject to the maximum 42.7% rate.
The Ministry has extended the anti-dumping investigation period from August 2024 to February 2026. Interested parties have been given 10 days from the announcement date to submit written comments to the investigating authority.
