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China Strikes Back: Anti-subsidy Investigation Begins Against Imported Dairy Products From The EU

by THEFUTURE.TEAM

August 22, 2024

China has announced the start of an investigation into EU-subsidized dairy imports. The news comes just a day after Brussels published its revised draft to introduce higher tariffs on electric car imports from China.

KEY FACTS

According to information from the state-run Xinhua news agency, China’s Ministry of Commerce is launching an anti-subsidy investigation against imports of dairy products intended for consumption. It is about cheeses, milk and creams.
The investigation began following a complaint filed by the China Dairy Association and the China Dairy Industry Association on July 29.
China will consider 20 subsidy schemes from across the 27-member bloc, specifically those from Austria, Belgium, Croatia, the Czech Republic, Finland, Italy, Ireland and Romania.
According to Chinese customs data, the EU is the second largest supplier of dairy products to China with at least 36% of the total value of imports in 2023. According to data from the European Commission, in 2023 the EU exported to China dairy products worth 1, 7 billion euros ($1.84 billion).
In June, the Chinese authorities announced the initiation of another investigation – into the subsidized import of pork and frozen products. The investigation began following a complaint filed by the China Animal Breeding Association. According to data from EU customs, more than half of the pork imported from China in 2023, worth about 6 billion dollars, falls.

KEY STORY

The European Commission announced the introduction of higher tariffs on electric car imports from China and launched an investigation into the excessive amount of subsidies the state provides to the sector. The EU believes that cheap imports from China are undermining the European market. The tariffs were preliminary and were put in place while the investigation is still ongoing.

China says the measures are protectionist and has threatened to retaliate with its own tariffs on a number of sectors, including pork, large-engine cars and spirits. Beijing also disputes the measures before the WTO.

According to the EC’s final proposal, the Chinese companies that will be hit the hardest by the higher tariffs are SAIC Motor Corp., Volvo Car parent company AB Geely and BYD. They face additional duties of 36.3%, 19.3% and 17% respectively. These duties will be added to the existing 10% levy on EV imports into the EU.

The final decision will be taken only after the publication of the final regulation by 30 October 2024 at the latest. All potential measures will be in force for a period of 5 years, which may be extended.

WHAT TO WATCH FOR

Rates may still change before they become final. The parties have the right to dispute this proposal within 10 days after its publication. Their comments will be considered and taken into account. Chinese companies condemned the EC’s decision and described the tariffs as “unfair”.

Illegal Employment on the Rise in Cyprus as Undeclared Work Declines

by THEFUTURE.TEAM

September 16, 2024

A recent report on the labour market in Cyprus has revealed a worrying increase in illegal employment, even as the rate of undeclared work shows signs of decline. The findings, which were discussed during a parliamentary session, have raised concerns among lawmakers and authorities alike about the ongoing challenges in combating labour exploitation and maintaining fair employment practices.

According to data presented by the Ministry of Labour, the issue of illegal employment—workers being hired without proper work permits or contracts—has escalated in recent months. This rise comes at a time when efforts to reduce undeclared work, where employees are not registered or insured, have seen moderate success. Despite progress in regulating the labour market, illegal employment remains a significant issue, especially in industries such as construction, agriculture, and hospitality.

Understanding the Distinction Between Illegal and Undeclared Employment

Illegal employment refers to the hiring of individuals who are not legally permitted to work, often due to their immigration status or lack of proper documentation. These workers are typically vulnerable to exploitation, receiving lower wages and lacking access to basic protections such as healthcare and social security benefits. In contrast, undeclared work involves the employment of individuals who may be legally allowed to work but are not officially registered, depriving them of insurance coverage and other legal protections.

While authorities have made strides in reducing undeclared work, particularly through stricter inspections and penalties, the rise in illegal employment presents a new challenge. Lawmakers pointed out that illegal employment poses even greater risks, as it not only harms the workers involved but also undermines the integrity of the labour market and contributes to unfair competition among businesses.

Factors Driving Illegal Employment

Several factors contribute to the increase in illegal employment, according to the Ministry of Labour. One key driver is the influx of migrant workers, many of whom lack the necessary documentation to work legally in Cyprus. Without proper channels for legal employment, these individuals often turn to unregulated jobs where they are vulnerable to exploitation.

The growing demand for cheap labour, particularly in sectors like construction and agriculture, also plays a significant role. Employers seeking to cut costs may resort to hiring illegal workers, bypassing the legal requirements for contracts, wages, and benefits. This practice not only puts workers at risk but also creates an uneven playing field, where businesses that comply with legal standards struggle to compete with those exploiting illegal labour.

Efforts to Combat Illegal Employment

In response to these findings, the government has pledged to intensify its efforts to combat illegal employment. This includes increasing inspections, imposing harsher penalties on employers found guilty of hiring illegal workers, and strengthening collaboration with immigration authorities. Additionally, there is a push to create more pathways for legal employment for migrant workers, ensuring they can enter the labour market with proper documentation and protections.