EU Launches WTO Challenge Against China Over Dairy Import Investigation

The European Commission has initiated a challenge at the WTO against China's investigation into EU dairy products, following the EU's tariffs on Chinese electric vehicles. This unprecedented move aims to address a pattern of China's quick trade defence measures. Both entities now have 60 days for consultations at the WTO.

The European Commission has taken an unprecedented step by challenging China's investigation into EU dairy products at the World Trade Organisation (WTO). This move follows the EU's recent imposition of import tariffs on Chinese electric vehicles.

The Commission stated that the EU's action addresses a recurring trend where China swiftly initiates trade defense measures based on insufficient evidence. Initial proceedings will involve a 60-day mandatory consultation period between the parties. If these consultations fail to yield a satisfactory outcome, the Commission plans to request the formation of an adjudicating panel.

WTO panels typically take more than a year to deliver conclusions. China's commerce ministry expressed regret over the WTO challenge and defended its investigation based on compliance with Chinese law. As tensions rise, China has ongoing anti-dumping probes into other EU goods.

(With inputs from agencies.)