TENSION IN EU-CHINA RELATIONS OVER PORK

Following the announcement by the Chinese Ministry of Commerce on 13 June, the Chinese meat industry was pressing the government to launch an anti-dumping investigation into EU pork products. Trade tensions between the EU and China have reached a new level following the decision of the Chinese authorities to initiate this investigation under Chinese law and WTO rules.

It is also clear that this measure was taken in response to the EU’s announcement to impose tariffs on Chinese electric vehicles.

Different Spanish sectoral associations are in contact with the Spanish government urging it to intervene and force the European Commission to negotiate with the Chinese authorities, in order to mitigate the impact of this investigation on Spanish exports, the main European exporter of pork products to China.

From 17 June 2024, Spanish companies have 20 days to register on the website of the Chinese Ministry of Commerce and take part in an exhaustive investigation. This process could last between 12 and 18 months, or at least this is the information that is assumed, as there is no real confirmation of this. During the investigation period, according to Spanish industry associations, and except for the imposition of provisional measures by China, the current flow of goods should not be affected. Nor can it be guaranteed that provisional measures will NOT be imposed, which would affect exports; everything will be a negotiation between politicians and we already know all the criteria of the European authorities. At the very least, we should recognise that this whole situation could generate uncertainty for customers who currently buy Spanish pork products in China.

The imposition of tariffs on EU pork is still a big unknown and will of course depend on the negotiations between the Chinese government and the European authorities. There are many months ahead in which this situation could undergo profound changes, both for and against, the uncertainty is total.

The pig sector has always shown resilience and its ability to adapt to the problems that have arisen throughout history, having been able to overcome many problems such as the current one and even come out of them stronger.  The demand for pork products does not end in China, although it is true that we should not deny its importance and the profitability of that market, but the demand for our products is very broad worldwide, on all five continents. We have a magnificent production model in our favour, despite the regulations of those who have caused us this problem (our dear European politicians), which has a very high international reputation, with product quality and food safety that is highly valued. Perhaps the time has come to analyse new business opportunities and to be less dependent on the Chinese market, which is so capricious and which sooner rather than later will make us go through more difficult situations, especially with the domestic production capacity that they are reaching.

There are other markets awaiting us, perhaps earning less today means earning much more tomorrow.