French Foreign Minister Jean-Noel Barrot will visit China on March 27-28 to address trade tensions impacting the cognac industry, which has seen a 60% drop in exports. The industry faces dual threats from both the EU-China dispute and U.S. tariffs, prompting urgent calls for resolution to protect jobs and market viability.

The French Foreign Minister, Jean-Noel Barrot, is scheduled to visit China on March 27 and 28, as stated by Florent Morillon, the head of the cognac lobby group BNIC. This visit underscores the pressing need for alleviating trade tensions between the European Union and China, particularly given the cognac industry’s challenges amidst two significant trade disputes.

The French cognac sector has experienced severe repercussions from these conflicts, notably a 60% decline in exports to China within the last four months. Morillon emphasized that the industry is effectively held hostage in this trade row, indicating that it is imperative to find solutions to sustain their operations and jobs.

According to Morillon, France’s cognac and brandy industry relies heavily on the U.S. and Chinese markets, which collectively account for 70% of overall sales. He cautioned that a failure to resolve the ongoing disputes could annihilate jobs and harm the industry’s ecosystem significantly.

Recent actions have intensified the trade conflicts; China has enacted temporary anti-dumping measures on EU brandy imports following tariffs imposed by the EU on Chinese electric vehicles. Consequently, cognac sales have been severely impacted, and these measures risk becoming permanent next month.

Furthermore, President Trump has threatened to impose a staggering 200% tariff on European wines and cognacs, leading Morillon to assert that such tariffs would effectively eliminate their sales presence in the U.S. market, which yielded exports worth approximately 1 billion euros last year.

In conclusion, the planned visit of French Foreign Minister Jean-Noel Barrot to China signifies an urgent attempt to address the escalating trade tensions affecting the cognac industry. With exports significantly declining due to these disputes with both China and the United States, the industry faces critical challenges that threaten jobs and economic viability. Effective negotiations are essential to prevent further damage and ensure the survival of this vital sector.

Original Source: www.usnews.com

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