Electric cars, EU brings China to WTO over retaliation against European cheeses

Brussels – The European Union filed a complaint against China before the World Trade Organization (WTO), contesting the decision of Chinese authorities to launch an anti-dumping investigation into cheese and dairy products exported to the People’s Republic, which it sees as unfounded and specious. According to the Commission, Beijing based its actions on  “questionable allegations and insufficient evidence, within a short period of time,” undermining its credibility. As a result, it decided to start consultations at the WTO to stop what it considers “an abuse of trade defense instruments” in retaliation to the decision to impose tariffs on China’s battery-electric car. 

The Chinese government announced the initiation of investigations into European dairy products on August 21, a day after the EU confirmed its intention to impose import tariffs, with a slight downward shift, on eco-friendly four-wheelers produced in China with the help of public subsidies that the EU considers to be anti-competitive. The decision to activate the WTO against China is part of the broader Sino-European trade war, reflecting tensions that the bilateral meeting between the heads of trade of both sides, Valdis Dombrovskis and Wang Wentao, failed to dissipate. 

It marks the first time the EU has challenged an investigation at its initial stage without waiting for its outcome – highlighting how sensitive the situation is. “The Chinese investigation on EU dairy is based on questionable allegations and insufficient evidence, therefore we will continue to challenge it vigorously in all available venues,” Trade Commissioner Valdis Dombrovskis stressed. He promises not to give in or make concessions. “The Commission is doing everything it takes to defend EU dairy producers and the Common Agricultural Policy,” and the decision to appeal to the WTO shows a willingness to move forward.