French Foreign Minister Jean-Noel Barrot plans a visit to China to discuss easing trade tensions affecting the cognac industry, which has experienced a 60% drop in exports to China. The sector faces threats from both EU-China and EU-U.S. trade disputes, with potential job losses at stake. Morillon warns that without resolution, existing tariffs could severely impact sales and jobs.
France’s Foreign Minister Jean-Noel Barrot is set to visit China on March 27 and 28, as announced by the head of the cognac lobby group BNIC. This visit seeks to address the escalating trade tensions between the European Union and Beijing, impacting various industries, particularly cognac, which is facing severe export challenges.
The French cognac industry is entangled in two significant trade disputes: one involving the EU and China and the other between the EU and the U.S. Florent Morillon, head of BNIC, stated that cognac exports to China have decreased by 60% in the last four months.
Morillon emphasized that the cognac sector, vital to the French economy, relies heavily on exports to China and the U.S., which together account for 70% of total sales. The decline in exports poses a critical risk to jobs and the regional economy, highlighting the industry’s fight for survival.
China’s imposition of temporary anti-dumping measures on EU brandy imports followed the EU’s decision to apply tariffs on Chinese electric vehicles. Without resolution, these anti-dumping measures could become permanent. Morillon also mentioned a recent threat from President Trump to impose a 200% tariff on European wines and spirits, warning that such tariffs could devastate U.S. sales.
Last year, cognac exports to the U.S. were valued at approximately 1 billion euros ($1.09 billion), showcasing the immense financial stakes involved in these trade disputes as the industry awaits solutions.
The planned visit of France’s Foreign Minister to China underscores the urgency of addressing trade tensions impacting the cognac industry. The sector faces severe export declines due to EU relations with both China and the U.S., threatening jobs and economic stability in the region. With escalated tariffs looming, the industry’s survival hinges on diplomatic solutions.
Original Source: www.usnews.com
