Drought in Russia: Grain region particularly affected
In Russia, the main region for grain cultivation has been experiencing dry conditions for weeks. This is likely to result in lower yields and poorer quality than previously expected.
China has extended the anti-dumping investigation against EU pork, giving local exporters a reprieve. A decision on potential trade restrictions is still pending. The Beijing Ministry of Commerce cited the "complexity" of the case in a brief statement on Tuesday (10.6.). The investigation is now set to continue at least until December 16 of this year.
The procedure was initiated by China nearly a year ago, citing alleged price dumping by EU suppliers. European politicians have repeatedly dismissed the accusations as unfounded. Industry representatives have also expressed doubts about the plausibility of the dumping allegations since pork exports to China have been declining for years.
Observers believe that not only the anti-dumping investigations against pork but also similar cases involving European brandy and dairy products are seen as China's leverage in the dispute over electric vehicle exports. Last summer, the EU imposed tariffs on Chinese imports of EU cars.
Recent delays in decisions regarding brandy and now pork could be attributed to the recent softening of relations between Beijing and Brussels. The EU has shown willingness to enforce minimum prices for Chinese cars instead of imposing tariffs. Last week, the Chinese government hinted that European companies could receive preferential treatment in export applications for rare earth minerals.
Top-level discussions scheduled for next month between the EU and China are expected to address these issues, commemorating half a century of diplomatic relations between Beijing and Brussels. Whether a resolution on major trade issues will lead to relaxation in agricultural trade remains to be seen.