EM Daily Brief

Photo : REUTERS/Denis Balibouse

The EU Challenges China’s probe in imported dairy products

By Samruddhi Pathak 

THE EU
Challenges China’s probe in imported dairy products
On 23 September, the EU approached WTO for a dispute settlement mechanism. The appeal has been made on the basis of “lack of evidence” on China’s probe to investigate the EU’s dairy products. The probe was launched in August by China’s Commerce Ministry. The probe focuses on production of fresh and processed cheese, blue cheese and other cheese, milk and cream products. Eight member states, namely Austria, Belgium, Croatia, the Czech Republic, Finland, Ireland, Italy and Romania, will be affected by the investigation. The probe seems like a tit-for-tat move from China over the tariffs that were imposed by the EU on Chinese EVs. The EU had accused China of providing unfair subsidies to EV makers which helped them sell the EVs at a much cheaper price compared to European EVs. Valdis Dombrovskis, the Commission's executive vice president in charge of trade, and Wang Wentao, China's minister of commerce, held a meeting in Brussels to discuss negotiations for the EVs tariffs. This is the first time that the EU has approached WTO over anti-subsidy investigations. The European Dairy Association, a lobby group for dairy farmers, has shown solidarity with the EU vice president. In 2023, the EU exported €1.76 billion in dairy products to China and Ireland is the leading exporter. (Jorge Liboreiro, “Brussels takes China to the WTO over 'questionable' probe into EU dairy products, Euronews, 24 September 2024)

Sweden and Finland urge the EU to provide subsidies based on rule of law
On 24 September, Jessica Rosencrantz, Sweden’s Minister for European Affairs, and Joakim Strand, Finland’s Minister for European Affairs, wrote a letter to the European Commission saying, “All member states must adhere to our common values, notably rule of law, democracy, and fundamental rights,” emphasising on making EU Common Agricultural Policy (CAP) allocation conditional. The CAP has allocated EUR 264 billion from the period of 2023-2027 to support farmers through direct income support and other means. The letter from Swedish and Finnish Ministers came after Poland passed a controversial judicial reform and Hungary also breached EU laws on asylum seekers. The letter has requested the EU to make full use of mechanisms like imposing fines and deducting EU allocation budgets. The letter said, “Our taxpayers need to trust that the EU’s common funds are used appropriately and responsibly.” (Jorge Liboreiro, “Sweden and Finland want to tie EU farm subsidies to rule of law,” Euronews, 24 September 2024)

FRANCE

Cabinet to discuss on debt and migration
On 23 September, the new cabinet in France composed of 39 ministers, including the Prime Minister Michael Barnier, came together for the first time since forming the government. During an interview, Barnier acknowledged that bringing the cabinet and the parliament on the same page on the Budget for 2025 would be a challenge. He emphasised that he will not increase taxes to further burden French citizens. France is already in “excessive deficit procedure” according to an EU recommendation published in June 2024. Meanwhile, he also vowed to control and limit immigration. Barnier will deliver his first general speech to the National Assembly on 01 October. (“French cabinet meets to discuss tackling budget and migrant issues,” Euronews, 24 September 2024)

THE UK

Issues warnings amidst heavy rains and floods
On 23 September, the Met office in the UK issued weather warnings in England and Wales. So far, yellow weather warnings have been issued which implies disruption like floods and power cuts. Railway lines from Bedford to Bletchley have also been shut. The London Fire Brigade said that they received around 350 flood related distress calls. Transport for London has warned passengers that metro lines have been either partly suspended or subject to minor to severe delays because of floods. (Vicky Wong and Matt Taylor, “Flash floods and heavy rain batter England and Wales,” BBC, 23 September 2024)

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