BRUSSELS – The EU yesterday launched a WTO challenge against a Chinese anti-subsidy investigation into imports of European dairy products, in an escalating trade row between Beijing and Brussels.

Beijing announced its probe in August after the European Union unveiled a plan to hit Chinese electric vehicles with hefty tariffs.

“Today, the (European) Commission launched a consultation request at the World Trade Organisation, challenging China’s initiation of an anti-subsidy investigation against imports of certain dairy products from the EU,” the EU’s executive arm said.

“The EU’s action was prompted by an emerging pattern of China initiating trade defence measures, based on questionable allegations and insufficient evidence, within a short period of time,” it said.

The Chinese investigation covers a range of items from fresh cheese and curd to blue cheese, including some milk and cream.

The Chinese probe takes aim at subsidies provided to the EU’s 27 member states under the Common Agricultural Policy, but also national subsidy plans in Ireland, Austria, Belgium, Italy, Croatia, Finland, Romania and the Czech Republic.

“The commission is following through on its commitment to firmly defend the interests of the EU dairy industry and the Common Agricultural Policy against abusive proceedings,” Brussels said in a statement.

The European Commission in July announced plans to levy import duties on electric vehicles imported from China after an anti-subsidy investigation started last year found they were unfairly undermining European rivals.

The EU wants to protect its automobile industry, a jewel in Europe’s industrial crown providing jobs to around 14 million people.

The commission is in charge of trade policy for the 27-country bloc.

The tariffs are currently provisional and will only become definitive for five years after a vote by member states that should take place before the end of October. China has angrily responded to the EU’s plans, warning it would unleash a trade war.  – Nampa/AFP