China's new levies on EU dairy imports set to hit Ireland's €359m export trade
Closeup shot of a glass of milk on a dairy farm with cattle grazing in the background
The Irish dairy industry is getting caught in the trade row crossfire between the EU and China after Beijing levied tariffs on some dairy imports from the European Union following an anti-subsidy probe, adding to a tit-for-tat trade dispute with the bloc.
In an preliminary decision, China said it will levy up to 42.7% duties on some dairy products from the bloc after finding that the exports were subsidised, according to the commerce ministry.
Last year, dairy exports from Ireland to China amounted to €359m, while in October Minister of State at the Dept of Agriculture Timmy Dooley led an agri-food trade mission to the country, to promote Irish exports.
The announcement made by China on Monday is provisional and could yet be revised or revoked before a final ruling. Last week, China significantly provisional tariffs on pork in its final decision.
Dairy Industry Ireland, the Ibec association representing the sector, has expressed disappointment at the announcement by Chinese authorities.
“We are calling on the EU Commission and the Irish government to work quickly to resolve this issue and ensure that farm families and the industry are not negatively impacted, at a time where dairy markets around the world are struggling," Diary Industry Ireland director Conor Mulvihill said.
"While any trade disruption is unwelcome, and China is an important market for both EU and Irish dairy, Irish dairy is well diversified in its product mix and destination countries. Irish dairy has complied in full with all previous Chinese and EU information requests regarding the previous Chinese investigation.
"It is highly frustrating that again, dairy seems to be used as a political pawn in a wider trade dispute between the EU and China regarding electric vehicles. We are currently working hard with authorities to understand the full impact of this announcement on Irish and EU dairy, and we will be encouraging constructive dialogue and restraint between all parties.”
China launched an investigation into shipments from the EU in August 2024, focusing on products including fresh and processed cheese. China also imposed anti-dumping levies ranging from 5% to 20% on pork imports from the bloc last week, softening preliminary measures taken in September.
The EU has challenged the dairy probe by requesting consultations via the World Trade Organization.
Additional reporting by Bloomberg
