EU Takes Action Against Unfair Trade Practices
On July 11, the European Commission, the executive branch of the European Union, announced the imposition of definitive anti-dumping duties on lysine imports from China. These duties, ranging from 47.7% to 58.2%, aim to protect EU producers of lysine, an essential amino acid used in animal feed, pharmaceuticals, and food supplements. The decision follows a 2024 investigation that determined Chinese imports were harming the EU industry through unfair pricing practices.
The final duties replace provisional measures set in January, which had ranged between 58.3% and 84.8%, depending on the exporter. The European Commission stated that these measures are crucial to leveling the playing field for Europe’s sole producer of the amino acid. Typically, such anti-dumping duties remain in effect for five years, with the possibility of extension or early termination based on subsequent reviews.
Impact on EU Industry and Feed Sector Concerns
Europe’s primary lysine producer has welcomed the decision, noting that the duty encourages plans to boost production within the bloc. This move is seen as a step toward strengthening the competitiveness and sovereignty of the EU’s industrial base. The company, supported by groups like Avril and its subsidiary Eurolysine, views the regulatory support as opening new prospects for growth in a market previously undercut by dumped imports.
However, not all stakeholders are in agreement. FEFAC President Pedro Cordero expressed deep concern over the high level of these tariffs. He highlighted that the EU currently depends on China for 60% of its lysine demand, totaling approximately 500,000 tons equivalent of lysine hydrochloride annually. With insufficient alternative supplies from EU production or other third countries, Cordero warned that the measures could lead to significant adverse economic consequences for the EU feed and livestock sector.
Broader Context of EU-China Trade Tensions
The imposition of anti-dumping duties on lysine is part of a broader pattern of trade tensions between the EU and China. This action follows similar measures on other Chinese products and comes amidst retaliatory steps from China, such as anti-dumping duties on European brandy announced earlier in July. These escalating trade disputes underscore the challenges of balancing fair competition with economic dependencies in critical sectors.
The European Commission remains committed to defending its industries from unfair practices while navigating the complexities of global trade. As the situation develops, the impact of these duties on both EU producers and the broader agricultural sector will be closely monitored. The balance between protecting domestic industries and maintaining supply chain stability remains a critical issue for policymakers and industry leaders alike.