NEWS
FRENCH FOREIGN MINISTER WILL VISIT CHINA THIS WEEK WITH COGNAC TARIFFS HIGH ON AGENDA
By Siulan Law Mathews DipWSET
24-3-2025
Credit: Siulan Law Mathews
French foreign minister Jean-Noël Barrot is set to visit China on 27 and 28 March, the visit comes at a crucial time as the French Cognac industry finds itself caught by the trade disputes between the European Union (EU) and China.
Leaders of Bureau National Interprofessionnel du Cognac (BNIC) are pinning their hopes on Barrot's visit, they have reportedly urged the foreign minister to persuade Beijing to extend the anti-dumping investigation deadline by three months.
The current deadline for the investigation is 5 April, if no extension is granted, the interim anti- dumping measures could become definitive, causing permanent damage to Cognac's sales in China.
French diplomatic sources has confirmed Barrot's Asian itinerary, which includes stopping in Indonesia and Singapore before arriving in China.
High on the agenda of the French foreign minister’s visit is to ease trade tensions between the EU and China.
The French government understands that resolving the Cognac issue could be a leverage to mending the trade relationship between the two economic powerhouses.
Despite strong objection from member states including Germany and Hungary, the EU voted to impose extra tariffs ranging from 7.8 percent for Tesla to 35.3 percent for SAIC and other Chinese EV producers last October.
In retaliation, China started to levy importers of European brandies security deposits ranging from 30.6 to 39.0 percent of the import value from 11 October, as interim measures before investigations conclude.
French Cognac exports to China slumped by 23.8 percent by value and 9.6 percent by volume last year as Beijing’s anti-dumping measures on European brandies take its toll, BNIC data showed.
Globally, French Cognac exports dropped by 10.6 percent in value compared to 2023. The fall was driven by a 24.2 percent decrease in the value of exports to the Far East region, which is mainly represented by China.
(the writer can be contacted at: info@thewinechronicle.com)
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