China Investigates EU Pork Imports Amid Trade Tensions
MADRID - China's recent investigation into European Union pork imports has significant implications for Spain, the largest EU supplier of pork to China. This development follows the EU's implementation of duties on Chinese electric vehicle (EV) imports. In 2023, Spain supplied 22% of China's imported pork, valued at 1.2 billion euros.
Prompted by the China Animal Husbandry Association, the investigation targets alleged underpricing in the pork industry. Spain's Agriculture Minister, Luis Planas, affirmed the subsidies' compliance with World Trade Organization rules and mentioned ongoing discussions with the EU to resolve the issue.
Spain's pork industry, represented by the National Association of Spanish Meat Industries (ANICE) and its general director Giuseppe Aloisio, considers the probe a significant concern but not a sector-threatening issue. Spain's resilience in the market is highlighted by its historical adaptability, including a pivot from the Russian market to others after consecutive import bans.
Given the strategic importance of Spain's car industry, second in the EU behind Germany, Spain may prioritize automotive interests over pork in EU-China trade negotiations. This sentiment was echoed by Miguel Otero from the Elcano Royal Institute.
China's reaction also includes potential countermeasures like import taxes on EU petrol-driven vehicles in response to the EU's EV tariffs. The evolving trade dynamics between two major economic powers leave Spanish pork producers preparing for market diversification, with increased focus on other Asian markets such as Japan, South Korea, and the Philippines.
Current Status and Future Outlook
As the investigation unfolds, the pork sector is expected to adapt, much like in previous market disruptions. Meanwhile, China possibly aims for a negotiated settlement to avoid a trade war. Nonetheless, Spanish pork exporters remain vigilant, strategizing for contingency plans and market diversification.