China probes pork anti

After China imposed tariffs on mt5 official website downloadEU electric vehicles, it launched an anti-dumping investigation into EU pork imports. This news caught Spain's pig farming industry off guard this week, but the sector has shown its resilience, which is far less vulnerable compared to the EU automotive industry.

In 2023, Spain supplied 22% of China's total pork imports, valued at 1.2 billion euros (approximately 1.29 billion dollars). Following the EU's measures against Chinese-subsidized electric vehicles last week, Spain stands to lose the most in this investigation into low-priced pork.

"It was like a bucket of cold water poured on us; we were completely unprepared," said Giuseppe Aloisio, Director General of the National Association of Meat Industries (ANICE) in Spain, speaking about the announcement.

"It's worrying because the volumes are significant, but even if China decides to impose tariffs, it won't bankrupt the pork industry," he added.

China stated that the investigation was initiated in response to a complaint filed by the Chinese Livestock Association on behalf of the domestic pork industry, without providing further details.

At a press conference on Tuesday, Spain's Minister of Agriculture, Luis Planas, indicated that the subsidies to the pork industry comply with World Trade Organization rules, adding that Spain is in discussions with the EU on potential solutions.

With the investigation potentially taking at least a year to complete, there is ample time for negotiations.

Nonetheless, Spain's pork industry has already demonstrated its resilience, and given the strategic importance of its automotive sector—second only to Germany as Europe's largest car producer—Spain is unlikely to push the EU to withdraw its measures against Chinese electric vehicles due to the threat of pork tariffs, according to Miguel Otero, a senior analyst at the Royal Elcano Institute in Madrid.

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.