Delay in Conclusion of Cognac Investigation Announced by French Minister
Chinese authorities have postponed the investigation into the import of French cognac and armagnac by three months, according to French Foreign Minister Jean-Noel Barrot. This delay alleviates immediate tariff concerns on these products, which are currently affected by broader trade tensions with the EU and the U.S.
The French Foreign Minister, Jean-Noel Barrot, announced during his recent visit to China that the conclusion of the ongoing investigation into the import of French cognac and armagnac will be delayed for three months. He stated, “Following this visit, I received confirmation that the investigation has been postponed by three months, which rules out the scenario of a sudden application of definitive law to this sector.” This adjustment prevents immediate enforcement of lasting tariffs on these products.
This investigation resulted in significant preliminary import tariffs on French-made brandies, primarily impacted by prior tariff measures imposed by the EU on Chinese electric vehicles (EVs). As a consequence, sales of cognac—a prestigious brandy from western France—have been adversely affected.
This development comes at a challenging time for the French cognac industry, which is also navigating increasing trade disputes with the United States. The cognac sector identifies both China and the U.S. as pivotal markets for its exports, underscoring the importance of resolving these trade conflicts.
In summary, the French cognac and armagnac import investigation in China will be extended by three months, delaying any potential new enforcement of tariffs. This decision follows significant trade tensions linked to EU tariffs on Chinese EVs, which have strained the sales of French brandies. The cognac industry continues to contend with challenges in its major export markets, particularly in light of ongoing disputes with the United States.
Original Source: www.usnews.com
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