“It will make it very difficult to compete in the market”

The national federation of dairy industries (Fenil) believes that the new tariffs imposed by China on the European dairy sector “they could generate undesirable effects on the European and Spanish dairy market, which is already under strong pressure”. The Chinese Ministry of Commerce announced this Monday the imposition of provisional tariffs of between 21.9 and 42.7% on imports of certain dairy products from the European Union, after preliminarily concluding that these receive subsidies and that they have caused “substantial damage” to the Chinese dairy industry.

According to Fenil, the provisional effective tariff for Spanish companies has been placed at 28.6% and, therefore, in the lowest range of taxes imposed, the maximum of which is 42.7%, according to the employers’ association. These new tariffs “so disproportionate” will make it “very difficult” to compete in this market from now on Therefore, “we regret the unilateral decision of the Chinese authorities,” the employers’ association warned in a statement. The investigation that China began a little over a year ago on EU cream and cheese focuses, “exclusively”, on the aid that dairy farmers in the European Union receive within the framework of the Common Agricultural Policy (CAP), as they have recalled.

The investigation that China began a little over a year ago on EU cream and cheese focuses, “exclusively”, on the aid that dairy farmers in the European Union receive within the framework of the Common Agricultural Policy (CAP), as they have recalled. In this sense, the dairy industries have defended that they have “always” worked with the certainty that the CAP regulations are “in line with the rules of international trade, agreed upon in the WTO.”

Fenil and the Spanish dairy industries that export to China have collaborated in recent months with the administrations of the Asian country “in everything that is within their scope of competence,” they specify. Spain exported dairy products to China for 96 million dollars (about 82 million euros) in 2024which was 4.3% less compared to 2023, according to figures from the Ministry of Agriculture, Fisheries and Food (MAPA). Dairy products represent the fifth Spanish export product to Chinabehind meat, olive oil, alcoholic beverages and fish products.