2024-06-20 03:30:45
After the “strawberry conflict” with the French in 1989, the “tuna conflict” with the British in 1990 and the “flounder conflict” (ss: sort of fish) with the Canadians in 1995, Spain entered yet one more “meals” battle. Within the “ham conflict” with China.
On Monday, Beijing introduced anti-dumping investigation into pork imports from the European Union, making step one in direction of imposing tariffs.
The investigation has begun lower than per week after Brussels introduced it will slap tariffs on Chinese language-made electrical automobiles of as much as 50%, claiming they profit from “unfair subsidies”.
Spain is by far the biggest exporter of pork to China, whose desire for the nation’s juicy (and costly) Iberico ham has change into trendy. The Netherlands, Denmark, France, Belgium and Germany are additionally necessary exporters.
However at lower than $2 billion final yr, pork represents a tiny fraction of commerce between the EU and China.
So why is China chasing a sector that, from an financial viewpoint, is of such little significance? Politics, studies Bloomberg.
The…identical challenge
Beijing is following the identical modus vivendi it has adopted in earlier commerce conflicts with Europe, the US and Australia.
Concentrating on agriculture, the gentle (pork) gizzard of Europe, China achieves two objectives: It retains the battle inside bounds whereas benefiting from the outsized enchantment of Europe’s agricultural foyer.
Beijing clearly he hopes EU states will now stress Brussels to melt the tariffs for electrical automobiles earlier than they’re formally enforced on July 4th.
Germany is already sad concerning the tariffs, fearing for its personal automobile gross sales in China, whereas Spain and France, which appeared undecided, they may unite with Berlin in opposition to Brussels.
Nevertheless, EU international locations can’t be left at China’s recreation.
An instance is Spain, the place pork could make headlines, whereas the standard of the meat is a supply of nationwide satisfaction.
Final yr, the nation exported 12.2 billion euros price of meat, together with not solely pork, but in addition beef and poultry, to the world.
Throughout the identical interval, its exports of automobiles, bikes and auto components reached nearly 54 billion euros. It’s clear which sector is of better financial significance.
Protecting home demand
China additionally is aware of that its imports of European pork, particularly low-value-added meat, are set to say no as its pig farming grows once more to satisfy native demand, one thing the Europeans know and are ready for.
European nations ought to play their playing cards fastidiously. China has opened a window for negotiation.
The investigation into pork doping practices is more likely to take six months, presumably a yr, leaving loads of time for talks. On this gentle, its response to Brussels is to not begin a commerce conflict, however quite to begin preliminary talks. Each side can discover a answer.
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