The UK’s Agricultural Minister, Charlie McConalogue, has voiced his firm belief that an inquiry by China into subsidies provided to dairy farmers won’t result in trade restrictions. Speaking in Beijing after engaging in high-level talks with prominent Chinese ministers, he assured that all supports provided by the EU and Ireland to the dairy sector adhered strictly to international trade norms.
“We are fully compliant with WTO regulations and are quite assured of this. Moreover, I am not overly anxious regarding this development, as I firmly believe that in conjunction with the European Commission, we possess the required resources to address any arising issues,” he elaborated.
McConalogue further noted that his current visit to the Chinese capital was well-timed as it provided him the platform to reassert his stance and reaffirm all concerns while also exploring various potential business avenues available to both the dairy industry and other sectors alike.
The start of McConalogue’s agri-food trade mission to China and South Korea saw him joined by Martin Heydon, Minister of State, who holds the responsibility for market expansion. This comes as the second visit within one and a half years for the Minister to both nations, following an agreement to reopen Irish beef markets there.
China’s Department of Commerce made public their intention to delve into EU subsidies of dairy product exports to China. This investigation will probe an array of EU subsidies and domestic measures inclusive of Ireland’s Dairy Equipment Scheme (DES).
The initiation of this investigation came after the European Commission announced sizeable new tariffs on Chinese EVs and is generally regarded as a response to this act. During his Beijing visit, McConalogue met with key personnel including Chinese Agricultural Minister Han Jun, Customs Minister Yu Jinhua, and Vice-Minister Wang Lingjun.
China is deemed as a significant market for us, especially in the dairy industry, accounting for approximately 6% of our total dairy exports, a percentage we aspire to sustain and ideally enhance, stated Mr. McConalogue. The meetings he attended this week hinted to promising opportunities in the future.
China reinitiated trade involving Irish beef earlier in the year. However, this corresponded with an economic downturn and a drop in consumer assurance. Mr. McConalogue conceded that these economic circumstances influenced the demand for Irish beef, franchised as a high-end product.
Although the demand is not as robust as it generally would have been, Mr. McConalogue believes that the market still presents potential opportunities. He further expressed that our beef corporations also view this as a promising future prospect.