China may yet drop its EU wine dumping probe

The threat of China imposing trade barriers to European Union wine over dumping claims has eased after it emerged the Asian country is open to talks on the issue.

EU Trade Commissioner Karel De Gucht confirmed yesterday (29 July) that an investigation has just started into claims of predatory pricing measures by French, Spanish and Italian wine producers. But, he suggested that action could be averted, before “final” measures are taken by China in June next year.

“There's is a window for discussions between the European and the Chinese producers within that timespan ... the Chinese Government has promised to faciliate such discussions,” he told a news conference. 

The wine probe was seen as a retaliatory measure, after the EU threatened to impose duties on solar panels imported from China. However, De Gucht announced yesterday that a deal had been agreed to avoid tariffs on China-produced solar panels.  

Last month French wine producers voiced fears over potential barriers to trade with China.