NEWS
BEIJING FOUND EU BRANDY MAKERS GUILTY OF DUMPING BUT NO PUNITIVE TARIFFS FOR NOW
By Tony Zhu
29-8-2024
Credit: Siulan Law Mathews
China’s Ministry of Commerce (MOC) said today that it will not impose interim punitive tariffs on brandies imported from the European Union (EU) despite having found that the category has been sold in China below market prices.
The MOC said in a statement that it has found that EU brandies have been sold 30.6 percent to 39.0 percent below market price, and this has caused damages to its domestic industry
"Provisional anti-dumping measures will not be taken in this case for the time being," the statement said without ruling out that punitive tariffs will be imposed when the probe finishes on or before 5 January 2025.
French Cognac makers association Bureau National Interprofessionnel du Cognac said China's provisional decision does not put its concerns about eventual tariffs to rest.
"We understand that the duties that could be applied to our products at the end of the procedure would average 34.8 percent. If imposed, such duties would heavily impact Cognac exports to China, a market that alone accounts for 25 percent of our exports," the association said in a statement.
"An entire sector would thus become the collateral victim of a conflict beyond its control ... We expect France and the EU to immediately negotiate for the non-application and abandonment of these duties," the statement added.
China has been canvassing EU’s 27 member states to reject the European Commission's proposal to impose extra duties of up to 36.3 percent on Chinese-made electric vehicles (EVs) in an October vote.
China has opened anti-subsidy investigations into dairy and pork products from the EU in recent months in response to the proposal.
The dairy probe was launched last week, the day after Brussels published its revised tariff plan for Chinese-made Evs.
China’s president Xi Jinping was reported to have promised French president Emmanuel Macron that China will not impose interim duties on French Cognac until the anti-dumping probe is over during his high-profile state visit to France in May this year.
To lobby for better treatment for Cognac, Macron presented the visiting Xi with two bottles of Cognac - a Hennessy XO and a prized Louis XIII by Remy Martin – as state gifts.
(the writer can be contacted at: info@thewinechronicle.com)
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