The European Union called on Monday on the World Trade Organization (WTO) to start dispute settlement proceedings in a spat with China over dairy products.
China started an investigation into the EU’s agriculture subsidies for certain dairy products last month.
Brussels however says these subsidies “are fully in line with international rules” and do not harm the Chinese dairy industry, a press release said.
“The Chinese investigation on EU dairy is based on questionable allegations and insufficient evidence, therefore we will continue to challenge it vigorously in all available venues, while calling on China to bring it immediately to an end,” said EU Trade Commissioner Valdis Dombrovskis.
The consultation request to challenge China’s investigation is the first step in the WTO dispute settlement proceedings, the commission said.
The EU and China have been at odds over alleged state subsidies.
Brussels launched an investigation into subsidies for electric vehicles produced in China last year and has since come up with plans to impose controversial long-term import tariffs.
Beijing accuses the EU of protectionism and has already responded with, for example, investigations into pork and dairy imports from the EU.
A meeting between Dombrovskis and Chinese Commerce Minister Wang Wentao last week ended without a breakthrough in that matter.
