EU dairy sector hit with retaliatory Chinese tariffs of up 42.7%

Dec. 22 (UPI) -- Beijing unveiled tariffs as high as 42.7% on imports of European Union dairy products on Monday, saying the subsidies Brussels provided to producers in the 27-country bloc were the cause of "substantial damage" to China's dairy industry.

The import taxes of between 21.9% and 42.7%, which come into force Tuesday following a 16-month-long anti-subsidy probe by China's Ministry of Commerce, will affect France's famous Roquefort, other blue, fresh and processsed cheeses as well as whole and unsweetened milk and cream.

"The investigating authority has preliminarily determined that imported dairy products originating from the European Union were subsidized, causing substantial damage to the relevant dairy product industry in China, and that there is a causal relationship between the subsidies and the substantial damage," the ministry said in a statement.

It said that the highest levy would be applied to the products of firms that had failed to cooperate with the investigation with firms that had been cooperative only subject to a rate of 28.6%.

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Firms named in the ministry list hailed from across the bloc with France, the Netherlands and Belgium heavily represented. Italian and Spanish producers also feature. Most companies were hit with a rate of 28.6% or 29.7%.

The Netherlands' Friesland Campina and its subsidiary in neighboring Belgium were both hit with the top 42.7% rate along with an "Other EU Companies" grouping, which is not specified. It is unclear if this group is all EU companies not named in the document that export to China.

The EU criticized the action, saying it was neither justified nor warranted.

The move came just over a year after the EU hit China's massive EV sector with import tariffs of as high as 36.3%, alleging unfair competition due to subsidies provided to the industry by the Chinese government.

Among the big three EV makers -- BYD, Geely and SAIC -- BYD and Geely were slapped with duties of 17% and 19.3% respectively, along with a 21.3% tariff on other "cooperating companies."

The top rate was applied to SAIC together with other EV makers deemed not to have cooperated with the EU's investigation.

The EV tariffs also saw Beijing launch anti-competition probes into Europe's brandy and pork products industries, leading to accusations the EU was dumping surplus pork production in the Chinese market.

In September, Beijing imposed short-lived tariffs of between 15.6% and 62.4% on EU pork and pig by-product imports, but revised them down to between 4.9% and 19.8% on Tuesday.