The profitable export of European pork and its by-products to China is seriously threatened by import tariffs and other restrictions, reports PigProgress.

Response to Retaliation

China has opened an anti-dumping investigation into pork imported from the EU, apparently in response to tariffs of up to 38.1% on electric vehicles (EVs) made in China.

The investigation will focus on pork intended for human consumption, such as whole fresh, chilled, and frozen cuts, as well as pork intestines, bladders, and stomachs, products that are particularly interesting for the EU pork industry as there is almost no market for them in Europe, according to industry experts.

"A complete suspension of EU pork exports to China would be a potential nightmare scenario for the pork supply chain, with implications across the EU," said Justin Sherrard, global strategist for animal proteins at Rabobank.

The EU accounted for more than half of the pork imported by China in 2023, worth about $6 billion. Chinese restrictions could particularly affect Spain, the Netherlands, and Denmark.

These countries exported pork and pork products worth over $2.6 billion to China between them in 2023. Other major pork exporters are France, Germany, and Belgium, although imports from Germany are currently suspended due to outbreaks of African swine fever in that country.

Strong Reaction

The official announcement of the investigation by the Ministry of Commerce followed complaints from the state-owned China Animal Husbandry Association (CAHA) on behalf of the pork industry regarding unfair trade practices from the EU.

Rumors of such Chinese retaliation against the EU's electric vehicle policy had circulated earlier in the local press. According to CAHA, the total amount of EU pork on the Chinese market justifies the dumping allegations.

"In recent years, the European Union has dumped large quantities of pork and pork by-products at reduced prices in China, impacting the Chinese pork and pork by-products industry, as well as the related agricultural sector and farmers." CAHA and others in the industry accuse the EU of "massive subsidies in its pork sector."

European Commission Not Worried

The European Commission is not at all concerned about the investigation announced by China, a spokesperson said.

Brussels will follow the procedure closely to ensure it is conducted in accordance with World Trade Organization (WTO) rules.

Brussels acknowledges that it subsidizes its agricultural sector with many billions of euros annually, but emphasizes that this policy is strictly in line with WTO rules and regulations.

Farmers Caught in the Crossfire

However, the European industry body for agriculture, Copa Cogeca, says that "it is unacceptable for farmers to be caught in the crossfire of trade disputes regarding other sectors."

"There are no real anti-dumping practices that can be attributed to our pork sector in Europe, but now we have no choice but to participate in this investigation, which is a costly process and most likely will lead to the loss of the market in China," commented General Director Patrick Pagani.

The Spanish industry body Interporc has called for negotiations instead of a trade war: "What we hope is that the relationship between the EU and China will always be good, and we strive to ensure that this good relationship continues," it said.

European pork producers should be able to continue exporting to China without tariffs while the investigation is ongoing, pending a decision and a tariff announcement from China. (Photo: Dreamstime)