China's import duties on European dairy products are significantly lower than previously reported. The provisional import duties on cream and cheese, announced in December, could reach as high as 42,7%. The final tariffs range from 7,4% to 11,7%, depending on the category the companies fall into. FrieslandCampina will face the highest tariff of all the European dairy companies on the list.
The proposal concerns additional import duties on cream and certain types of cheese for human consumption. Powdered milk and whey, by far the largest European export flows to China, will also remain unaffected by the final proposal. The Chinese Ministry of Commerce launched the anti-subsidy investigation into European dairy and meat products in August 2024. This was widely seen as a retaliatory measure following European import duties on Chinese electric cars.
At the end of December a interim decision, with levies ranging from 21,9% to 42,7%. These provisional rates are now being replaced by lower, definitive levies of up to 11,7%. This highest rate applies to FrieslandCampina. For A-ware, Arla, and DMK, the rate is 9,5%. The rates on dairy are lower than those on meat. The definitive levies for Dutch meat companies will vary between 9,8% and 19,8% for the next five years, as previously announced.
An exact date for the tariffs to take effect is not yet known, but they must be in effect by February 21st at the latest. That's when China's investigation will formally conclude. The European Commission and the companies involved have until February 9th to respond to the final ruling. Member states may still initiate WTO proceedings against China, Eucolait, the European dairy trade association, wrote in a statement.
Competitive position under pressure
Although the final levies are significantly lower than the provisional tariffs, the impact on the competitive position of European dairy producers remains noticeable, Eucolait reports. This is particularly true for cream. New Zealand has completely tariff-free access through a bilateral free trade agreement with China, further widening the price difference.