Progress in Resolving France-China Cognac Import Dispute
France’s Foreign Minister announced progress in resolving the cognac import dispute with China, highlighted by a three-month delay in a potential investigation conclusion. Current provisional tariffs could threaten the cognac industry but efforts are being made to find a resolution.
France is reportedly advancing towards resolving a trade dispute concerning cognac imports with China. Minister of Foreign Affairs Jean-Noel Barrot stated that the conclusions from a Chinese investigation, which could result in permanent customs duties on European cognac, have been postponed by three months until June.
Barrot expressed optimism, stating, “We’ll be really pleased when the problem is behind us. And it’s clear that, step by step, we’re moving towards a resolution.” This follows China’s announcement of provisional tariffs ranging from 30.6% to 39% on European brandies, including Remy Martin.
These tariffs stemmed from the European Union’s decision to impose duties on Chinese-made electric vehicles. Consequently, importers are currently required to deposit tariff amounts with the Chinese customs agency. The tariffs were instituted after preliminary findings indicated that European brandy was being dumped in China, threatening local producers with “substantial damage.”
Barrot further highlighted that the risk of definitive duties being applied at the end of the investigation period has now been alleviated by the three-month investigation postponement. He indicated that the outcome of the investigation will significantly impact the cognac sector.
Cognac is a crucial export for France, with China being its largest consumer market in terms of value. Experts suggest that imposing definitive duties could jeopardize 70,000 jobs and involve 270 cognac houses and 4,400 winegrowers. Barrot noted that China has initiated multiple anti-dumping investigations affecting European brandy, pork, and dairy products.
The cognac investigation is particularly focused on French producers like those of Armagnac and is expected to be closed after the extended three-month period. Barrot reiterated that collaborative efforts are ongoing to resolve the dispute swiftly. “Everyone will continue to work together to put this dispute behind us so that we can move forward on a sound basis,” he affirmed.
Additionally, during a state visit to France last year, French President Emmanuel Macron presented Chinese leader Xi Jinping with two bottles of cognac, symbolizing the prominence of this product in Franco-Chinese relations.
In summary, France is making significant strides in addressing the cognac import dispute with China, with recent developments indicating a temporary extension of the investigation phase. The potential imposition of definitive tariffs poses serious economic risks to the French cognac industry, affecting jobs and producers alike. Continued diplomatic efforts highlight a commitment to resolving these trade challenges amicably and effectively.
Original Source: www.independent.co.uk
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