Mullooly: “Urgent Action Needed as EU-China Trade Conflict Threatens Irish Farmers”
Ciaran Mullooly, Independent Ireland Member of the European Parliament (MEP), today expressed grave concern over the looming trade conflict between the European Union and China, which poses a significant threat to Irish farmers. MEP Mullooly will bring this critical issue to the forefront during the upcoming EU Agricultural Committee meeting this week, where he will advocate for immediate and decisive action to protect Ireland's agricultural interests.
The recent escalation in tensions between the EU and China stems from China’s decision to launch an anti-subsidy investigation into dairy products imported from the EU. This move appears to be a retaliatory response to the EU's recent imposition of tariffs on Chinese-made electric vehicles, a decision that has already stirred significant controversy.
Impact on the Irish Dairy Industry
The potential impact on Ireland's dairy sector, which is the largest exporter of dairy products to China among all EU member states, could be devastating. In 2022, Irish agri-food exports to China were valued at €722 million, with dairy products alone accounting for approximately €400 million. This includes significant exports to China's vast baby formula market—a crucial area of demand for Irish dairy.
The Chinese investigation, initiated by the country’s commerce ministry last week, will examine a range of dairy products including cheeses, milk, and creams intended for human consumption. Given Ireland’s leading position in supplying these products to China, the outcome of this investigation could result in severe restrictions on Irish dairy exports, jeopardizing the livelihoods of countless Irish farmers and the broader agricultural sector.
“Irish farmers stand to lose the most if this trade conflict is not resolved quickly,” said MEP Mullooly.
“With €461 million worth of Irish dairy exports to China in 2023 alone, we are the most vulnerable member state in this escalating trade war. The root of this conflict lies in the EU’s decision to impose tariffs on Chinese electric vehicles—a move that does not even have the full backing of the French and German car manufacturers it was intended to protect.”
Call for Immediate Negotiations
In response to what he described as an “alarming situation,” MEP Mullooly has written directly to EU Trade Commissioner Valdis Dombrovskis, urging him to enter into urgent negotiations with his Chinese counterpart. The goal of these talks would be to de-escalate the situation and prevent any further harm to the agricultural sector, which is already reeling from multiple challenges.
“The Chinese market is critical for the EU's dairy industry, with total trade valued at €1.7 billion,” Mullooly added: “It is imperative that we resolve this issue before it spirals into a full-blown trade war, with Ireland bearing the brunt of the damage.”
Next Steps
MEP Mullooly will raise this issue at the upcoming EU Agricultural Committee meeting on September 3rd, where he will push for the EU to prioritise the interests of Irish farmers in any further negotiations with China. He will also seek to ensure that the broader European agricultural sector is protected from the fallout of what is essentially a dispute over industrial goods—namely, French and German electric vehicles.
“As representatives of Ireland and the EU, it is our duty to safeguard the economic well-being of our farmers and ensure that they are not unfairly targeted in international trade disputes,” Mullooly concluded: “I will continue to advocate for immediate action to protect our agricultural industry and prevent further losses.”
