China slaps preliminary duties on EU pork imports

China on Friday placed preliminary anti-dumping duties as high as 62.4 percent on certain pork imports from the European Union, deepening a trade dispute with the bloc arising from its tariffs on Chinese electric vehicles.

The Ministry of Commerce's preliminary investigation found evidence of dumping that damaged the domestic industry and approved duties ranging from 15.6 percent to 62.4 percent that will start on September 10, according to a release on Friday.

Launched in June last year, the investigation is widely seen as retaliation for EU tariffs and has hit over US$2 billion (HK$15.6 billion) in pork exports, concentrated in major producers such as Spain, the Netherlands, and Denmark.

Friday's decision is bad news for producers who had hoped Beijing’s decision to extend the investigation for six months in June meant a deal over the bloc’s electric vehicle tariffs was in the offing.

A significant portion of the bloc's pork shipments to China consists of offal - including pig ears, noses, and feet - highly valued in Chinese cuisine but with few alternative destinations.

However, the decision is only preliminary and could theoretically be reversed or adjusted before the investigation ends in December. There is also precedent for China extending investigations even after imposing preliminary duties, keeping space open for talks.

China extended its anti-dumping investigation into Canadian canola for another six months on Friday despite having imposed preliminary duties in August.

REUTERS