[Text/Watchman Online Lin Chenli] According to Reuters, on April 11, amid the continuous escalation of the Sino-US trade war, China and Spain signed two agricultural trade agreements involving pork and cherries, expanding market access for Spanish pork in China.
The "Action Plan between the People's Republic of China and the Kingdom of Spain on Strengthening Comprehensive Strategic Partnership (2025-2028)" jointly issued by both sides on the afternoon of April 11 showed that both parties agreed to further expand agricultural product trade exchanges to benefit producers and consumers. Both sides intended to sign protocols for the import of fresh Spanish cherries and pork into China and promised to initiate negotiations for multiple agricultural product import agreements.
The Spanish Meat Industry Association stated: "Against the backdrop of the great international commercial turmoil caused by the tariff crisis, we welcome this new initiative from this Asian giant optimistically and hopefully, as it opens up new options for pork product supply."
Daniel de Miguel, International Manager of the Spanish Pork Producers' Alliance (Interporc), revealed that the new agreement includes allowing the export of Spanish pig stomachs, a product popular in China but previously not granted access.
The report mentioned that the signing of this agreement coincided with the intensification of the tariff war initiated by US President Trump. Chinese products exported to the US now face a 145% tariff, and China has also increased tariffs on American goods to 125%.
Inspecting the quality of ham at a Spanish ham manufacturer. Video screenshot.
Analysts believe that this agreement may signal China's intention to ease its anti-dumping investigation on EU pork.
Last June 17, China's Ministry of Commerce announced the initiation of an anti-dumping investigation into imported pork and pig by-products from the EU. The Ministry of Commerce's announcement showed that this investigation would begin on June 17, 2024, and should normally be completed before June 17, 2025, with the possibility of extending it by six months under special circumstances.
Luis Planas, Minister of Agriculture, Fisheries, and Food of Spain, said at the time that considering the potential duration of the investigation could exceed a year, he expected that Spain would not be affected by potential measures in the short term. "I hope and expect there will be room for mutual understanding and negotiation to avoid imposing tariffs on agricultural and food products," Planas said, because "trade wars are detrimental to everyone."
Previously, the EU imposed provisional countervailing duties on imported Chinese electric vehicles, and since Spain is both a major pork exporter and one of the main promoters of the tariff increase, China's move was seen by foreign media as a "retaliatory" measure. However, some experts analyzed that while China may have considered this issue, it might not be the "main factor."
The report pointed out that China's anti-dumping investigation may have a significant impact on countries such as Spain, the Netherlands, and Denmark, as a large portion of the pork sent from the EU to China consists of products like pig ears, snouts, trotters, and offal, which are rarely consumed in Europe but very popular in China.
Pork stalls at a Beijing market on June 14, 2024. Visual China.
In September last year, Sanchez expressed his intention to reconsider Spain's stance on the EU's tax increase on Chinese electric vehicles during his visit to China. During the final voting phase, Spain abstained.
Reuters reported that in 2024, China imported $4.8 billion worth of pork and pig by-products, more than half of which came from the EU, with Spain leading the EU's pork exports to China.
Data from China's General Administration of Customs in 2024 showed that Spain is the largest exporter of pork and pig by-products to China, followed by the US and Brazil, with the Netherlands, Denmark, and France ranking fourth, fifth, and seventh respectively.
According to data from the Spanish Pork Producers' Alliance, Spanish pork accounts for 21% of China's total pork imports. In 2023, Spain exported over 560,000 tons of pork-related products to China, valued at 1.2 billion euros. In terms of quantity, these products accounted for 20.3% of Spain's total pork exports; in terms of value, they accounted for 13.7%.
"This is good news for Spanish pig farmers," Even Rogers Pay, an agricultural analyst at consultancy Trivium China, said on April 11. "This indicates that China's regulatory authorities may delay or relax their investigation into pork, similar to what they recently did with brandy."
Pay added: "This is part of China's efforts to stabilize and improve trade relations with several important trading partners, including the EU."
On January 5 last year, China's Ministry of Commerce released Announcement No. 1 of 2024, deciding to initiate an anti-dumping investigation into related brandies originating from the EU. On December 25 last year, the Ministry of Commerce announced the extension of the anti-dumping investigation period until April 5, 2025. On April 2 this year, the Ministry of Commerce again announced the extension of the investigation period until July 5, 2025.
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