China’s threat to impose tariffs on pork products puts sector on alert

One of Newton’s laws states that every action generates a reaction of equal intensity, but in the opposite direction. This appears to be where the pork sector may ultimately suffer. The European Union, like the United States, has announced tariffs of up to 38% on the entry of Chinese electric vehicles into the community, a decision that Beijing has said it will not stand by. Now a Chinese newspaper Global Times Assures, citing “industry sources”, that some companies have “formally submitted a request to the relevant authorities” to open investigations into “certain imports” of pork and dairy products from the European Union (EU). In other words, to analyze whether pork receives assistance and therefore does not play on an equal footing in the market is precisely the European and American accusations against the Asian giant’s cars. If this becomes a reality, it will have a complete impact on the pig sector throughout the state and Lleida as one of the leading producers.

The Minister of Industry and Trade, Jordi Jereu, said yesterday in La Seu d’Urgell that he does not believe in trade wars and defended Lleida’s pig and agri-food sector as a whole, recalling that its competitiveness is not and has not been based on the past in government subsidies . In other words, Beijing would have no reason to impose tariffs on pork. China is the first destination for pork exports from Spain, despite a fall of 11.9% in the first two months of this year. They are followed by Italy (+34.2%), France (+2.9%), Japan (-7.1%) and the Philippines (+18.1%). In 2023, according to Interporc, Spain exported more than 560 thousand tons of pork products to China, valued at 1.223 million euros, giving the Asian country 20.33% of overseas pork sales, or 13.7 % of the total cost. 61% of Spain’s turnover from the sale of agri-food products to China comes from pork; This is followed by 109 million drinks and 97 million oils (74 million olive oil), according to the latest report for the transition year (March 2024). These trade tensions between the EU and China come just ten years after Russia closed its doors. for a large part of European food products, which was a heavy blow for Lleida’s fruits.

Influence on Lleida as a great leader in production

The possibility of China declaring a trade war against the EU, using the pig sector as a target, could be particularly damaging to Lleida, as it is not for nothing that it is a major production leader in Spain, currently second only to Huesca. According to the latest official data from the Ministry of Agriculture, 4.59 million animals are registered in the regions of Lleida, and in Huesca this figure rises to 5.10 million, for a state total of 30,189,917 animals. Pork is enjoying good times thanks to falling costs and high prices. The latest Generalitat study from April estimates profit per kilogram of live pig at 45 euro cents. The Anaisa Meat Industry Association has asked the government to activate all containment measures provided in these cases, given the enormous damage. Chinese tariffs will have an impact on exporting companies.