EU’s new Trade War with China: Pork
According to the Financial Times China has imposed preliminary anti-dumping duties of up to 62 per cent on European pork in a move seen as retaliation for the EU’s tariffs on Chinese electric vehicle imports.
China’s commerce ministry said that after more than a year of investigation, “preliminary evidence indicates that imported pork and pork products from the EU are being dumped, causing substantial harm to the relevant domestic industry”. It announced temporary duties of between 15.6 per cent and 62.4 per cent.
When Beijing announced the investigation in June last year, the European agricultural industry said farmers in Spain, the Netherlands, Denmark, Germany and Belgium would be hit hardest. The investigation is widely regarded as retaliation against Brussels’ move last year to raise tariffs to up to 45 per cent on some producers as part of an anti-subsidy probe into Chinese EVs.
Brussels has since announced various anti-subsidy probes and other types of investigations into a range of Chinese products, as tensions rise over China’s massive trade surplus with the bloc.
What does this mean for the EU:
European pork exporters will find it harder to sell into China, which is one of the largest consumers of pork globally. That could lead to a surplus of pork in Europe if producers can’t find other markets quickly.
For Consumers more supply at home can lead to lower pork prices within the EU. Thus, EU consumers may see cheaper pork in supermarkets or restaurants. Perhaps even enticing consumers to eat more pork as producers look to shift excess stock.
The EU will have to work on adjustment strategies: Producers will try to redirect exports to other regions (e.g., Southeast Asia, Africa, Latin America) and may also cut production if the tariffs last. Governments sometimes step in with subsidies or support programs for affected farmers.
Editorial Comment: For the EU Commission it will hopefully be a short-term focus following the lyrics from the Operetta the Zigeunerbaron “Mein idealer Lebenszweck ist Borstenvieh und Schweinespeck” (My ideal life’s purpose is bristly animals, pork belly and bacon).
Source: Financial Times and ChatGPT