France's Le Monde: China imposes tariffs on European pork imports

"China imposes tariffs on European pork imports" is the title of an article published by France's Le Monde in its economic section, which is a special report sent by two correspondents stationed in Beijing. The article points out that the Chinese market is of strategic importance to Europe, and in 2024, Europe exported 1.1 million tons of pork to China.

The article begins by stating: "The suspense of the anti-dumping investigation lasted until the last moment." On Tuesday, December 16th, the final decision was announced only on the deadline set by the investigation procedure. The Ministry of Commerce of China decided to impose tariffs ranging from 4.9% to 19.8% on pork imports from the EU starting from Wednesday, December 17th. The average tariff rate for French pork exports to China will be 9.8%.

Anne Richard, general secretary of the French Meat Industry Association (Inaporc), said: "Of course, we would have preferred no tariffs at all, but we are relieved to learn that the average rate is 9.8%, which is good news for more than 20 French companies involved."

At the beginning of September, Beijing indeed implemented a temporary tariff of 20%. Therefore, halving the tax rate is seen as the lesser of two evils. However, for two other major European companies, this is undoubtedly adding insult to injury: Vion, a Dutch company, and Danish Crown, a Danish company, were each subjected to tariffs of 19.8% and 18.6%, respectively. Meanwhile, their Spanish counterpart, Litera Meat, enjoys a preferential tax rate of 4.9%.

This decision ended an anti-dumping investigation process that lasted nearly 18 months. In June 2024, during a period when Beijing and Brussels were locked in a standoff over tariffs on European electric vehicle imports, the Chinese Ministry of Commerce launched an anti-dumping investigation into European pork imports. This investigation targeted fresh and frozen pork, certain cured and smoked pork products, and offal.

This move by China indicates dissatisfaction with Europe. From Beijing's perspective, President Macron's visit at the beginning of December did not achieve any substantial progress on the core issue of Chinese electric vehicles entering the European market. Instead, Macron quickly took a stronger stance on trade imbalances. At the same time, the EU announced on December 12th to impose a 3-euro tariff on small packages, a move clearly targeting Chinese e-commerce platforms such as Temu, Shein, and Alibaba. Additionally, the case of Nexperia, a Dutch semiconductor manufacturer controlled by Chinese capital, once again highlighted Europe's tensions over so-called strategic technologies.

Pork price decline

The article points out that the additional tariffs imposed by China on European pork are particularly painful for Spain, the main producer, because Spanish Prime Minister Sanchez has repeatedly taken measures to get closer to Beijing: he has made three official visits to China within three years, each time promising to promote free trade. Finally, any measures that can support pork prices are welcomed by China, as pork prices in China have dropped to the lowest level in three years due to overcapacity, and are expected to fall by 16% in 2025.

In Europe, pork prices are also declining. François Vally, president of the French National Federation of Pig Farmers, expressed concern: "There is a supply-demand imbalance in the European market. Since the summer, the price per kilogram of pork has dropped by 35 to 40 cents (i.e., about 35 to 40 cents of a euro)." Therefore, regaining visibility for exports to China is crucial. Notably, apart from the export volume, which was estimated at 1.1 million tons in 2024, with France exporting 1.15 million tons, the Chinese market is also strategically important because it can absorb parts of pigs that are less consumed in the European market but are highly favored by Chinese consumers, such as pig feet, snouts, and ears. This plays a key role in maintaining market balance in China and increasing the value of slaughtered animals.

Moreover, the African swine fever outbreak in Spain this autumn has also put downward pressure on pork prices. François Vally explained, "Fortunately, two weeks before the first case was found in Catalonia, Spain and Beijing signed a regional agreement. Therefore, Spain can continue to export pigs raised in other regions to China."

Source: rfi

Original: toutiao.com/article/1851706118018059/

Disclaimer: This article represents the views of the author."