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eNCA
05-07-2025
- Business
- eNCA
France says 'major issues' remain despite brandy price accord with China
PARIS - France on Friday praised China's steps to settle a trade dispute over European brandy imports but warned that "major issues" remained unresolved. The signs of a thaw in the row over the alcohol came as China's Foreign Minister Wang Yi met French President Emmanuel Macron and Foreign Minister Jean-Noel Barrot in Paris. In recent months China and the European Union have butted heads over Beijing's generous subsidies for its domestic industries. Beijing launched an investigation last year into EU brandy, months after the bloc undertook a probe into Chinese electric vehicle (EV) subsidies. In the latest salvo, China will from Saturday require European brandy exporters to raise prices or risk anti-dumping taxes of up to 34.9 percent. Beijing said 34 European brandy makers, including several French cognac producers, had signed an accord to avoid tariffs as long as they stick to an agreed minimum price. France's cognac makers' association BNIC, which includes key producers Hennessy, Remy Cointreau and Martell, confirmed that some companies had agreed to price increases in China to avoid anti-dumping taxes. Macron and Barrot praised China's steps to resolve the dispute but stressed they would discuss the outstanding differences with Wang. In a statement to AFP, Barrot said: "Several major issues remain unresolved, in particular the exclusion of certain players from the scope of the exemptions." "We remain fully committed to reaching a definitive solution based on the conditions that existed prior to the investigation," he said. Wang has held fraught meetings in several European countries this week. After meeting Macron and Barrot, Wang told a press conference: "The two sides had in-depth, active and sincere exchanges on Sino-French and European relations." No mention was made of the brandy dispute.
Yahoo
04-07-2025
- Business
- Yahoo
France says 'major issues' remain despite brandy price accord with China
France on Friday praised China's steps to settle a trade dispute over European brandy imports but warned that "major issues" remained unresolved. The signs of a thaw in the row over the alcohol came as China's Foreign Minister Wang Yi met French President Emmanuel Macron and Foreign Minister Jean-Noel Barrot in Paris. In recent months China and the European Union have butted heads over Beijing's generous subsidies for its domestic industries. Beijing launched an investigation last year into EU brandy, months after the bloc undertook a probe into Chinese electric vehicle (EV) subsidies. In the latest salvo, China will from Saturday require European brandy exporters to raise prices or risk anti-dumping taxes of up to 34.9 percent. Beijing said 34 European brandy makers, including several French cognac producers, had signed an accord to avoid tariffs as long as they stick to an agreed minimum price. France's cognac makers' association BNIC, which includes key producers Hennessy, Remy Cointreau and Martell, confirmed that some companies had agreed to price increases in China to avoid anti-dumping taxes. - 'Positive step' - Macron and Barrot praised China's steps to resolve the dispute but stressed they would discuss the outstanding differences with Wang. "This is a positive step towards resolving this dispute, which was threatening our exports," Macron said on X. "I will continue to raise these issues with the Chinese authorities this afternoon." In a statement to AFP, Barrot said: "Several major issues remain unresolved, in particular the exclusion of certain players from the scope of the exemptions." "We remain fully committed to reaching a definitive solution based on the conditions that existed prior to the investigation," he said. Wang has held fraught meetings in several European countries this week. After meeting Macron and Barrot, Wang told a press conference: "The two sides had in-depth, active and sincere exchanges on Sino-French and European relations." No mention was made of the brandy dispute. Almost all EU brandy is cognac produced in France, whose exports to China are worth 1.4 billion euros ($1.6 billion) per year. French liquor giant Jas Hennessy said it would face levies of 34.9 percent if it did not stick to the deal. Remy Martin will be hit with 34.3 percent and Martell 27.7 percent. "The decision to accept the price commitment once again demonstrates China's sincerity in resolving trade frictions through dialogue and consultation," a Chinese commerce ministry spokesperson said in a statement. However, the European Commission kept up criticism of China's new tariffs. "We believe that China's measures are unfair. We believe they are unjustified," said commission trade spokesman Olof Gill. "We believe they are inconsistent with the applicable international rules and are thus unfounded." - Upcoming summit - China has sought to improve relations with the European Union as a counterweight to the United States. But frictions remain, including a yawning trade deficit of $357.1 billion between China and the EU, as well as Beijing maintaining close ties with Moscow since Russia invaded Ukraine. The trade row blew up last year when the EU moved to impose hefty tariffs on Chinese electric vehicles, arguing that Beijing's subsidies unfairly undercut European competitors. Beijing rejected the accusation and announced what were seen as retaliatory probes into imported European pork, brandy and dairy products. The EU imposed extra import taxes of up to 35 percent on Chinese electric vehicles in October. Beijing lodged a complaint with the World Trade Organisation, which in April said it would set up an expert panel to investigate. China and the EU are to hold a summit this month to mark the 50th anniversary of their diplomatic ties. But Bloomberg News reported, citing unnamed sources, that Beijing would cancel the second day of the summit, in a sign of the tensions. bur-pfc-as/tw/phz Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
04-07-2025
- Business
- Business Times
China spares major cognac makers from EU brandy dumping duties
[SHANGHAI] China spared major cognac producers Pernod Ricard, LVMH and Remy Cointreau from new duties of up to 35 per cent on EU brandy announced on Friday (Jul 4), provided they sell at a minimum price. China's Commerce Ministry issued its final ruling following an investigation into brandy originating in the European Union, most of it cognac from France, launched last year. Duties of up to 34.9 per cent for a period of five years starting from Jul 5, 2025 would be levied on those without minimum price commitments or those that breached promised minimums, the ministry said in a statement. It did not disclose the minimum prices. In addition, China's commerce ministry will also give back deposits made by brandymakers since October 2024, when provisional duties were imposed. The refund issue, which weighed particularly heavily on smaller producers, was one of the sticking points in months-long negotiations, two industry sources said. Remy Martin-owner Remy Cointreau said in a statement that the deal on minimum price commitments constituted 'a substantially less punitive alternative' thus enabling 'the strengthening of some investments in China.' French cognac makers generate global exports of US$3 billion a year combined. They have complained they are collateral damage in a broader trade row between Brussels and Beijing over import tariffs imposed on China-made electric vehicles (EVs). BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up China imposed temporary anti-dumping measures last October of up to 39 per cent on imports of brandy from the EU, including on French brands including Hennessy and Remy Martin, after the European Union accused Beijing of giving its auto industry unfair subsidies, and imposed duties on imports of Chinese-made EVs. 'The French government has been raising this repeatedly with the Chinese government and saying this is a major bone of contention,' said a senior French industry source with knowledge of the China negotiations, who declined to be named because they were not authorised to speak to the media. 'I think both sides, France and China, did not want this to get out of hand, they wanted to find a resolution.' The Bureau National Interprofessionnel du Cognac (BNIC), a French cognac industry group, said that the deal for minimum price commitments will be 'less unfavourable' than anti-dumping duties, but still worse for its members than the historical pre-investigation norm. 'This is why we renew our call to the French government and the European Commission to reach a political agreement with the Chinese authorities as soon as possible to return to a situation without anti-dumping duties,' BNIC said in a statement. Monthly cognac exports to China, the world's most valuable market for the spirit, have fallen by as much as 70 per cent due to the trade dispute, according to BNIC data. Last week Reuters reported that French cognac makers had reached a tentative deal on minimum import prices for the Chinese market, but that China would only finalise the deal if progress was made regarding EU tariffs on Chinese-made EVs. Pernod Ricard, LVMH and Campari did not immediately respond to requests for comment on Friday. The news will likely be welcomed by brandy distillers that have also seen sales slow in the US, the world's biggest cognac market by volume, as a result of inflation and economic uncertainty. REUTERS
Local France
04-07-2025
- Business
- Local France
French cognac makers agree to price hikes in China: lobby group
From Saturday, China will require major European brandy exporters to raise prices or risk anti-dumping taxes of up to 34.9 percent, the latest salvo in its long-running trade spat with the bloc. The BNIC association of cognac producers said a number of companies agreed to increase prices, without disclosing the negotiated prices. 'In order to avoid seeing their presence in China completely undermined and to be able to plan their activities in China with greater stability, some of our companies have signed 'minimum price commitments',' the association said. 'The minimum price commitment regime offers more tolerable conditions for our companies than the definitive anti-dumping duties announced, even if the market access they allow remains impaired,' Florent Morillon, head of the BNIC, was quoted as saying in the statement. Advertisement In a separate statement, French cognac and liqueur maker Remy Cointreau also pointed to, 'an alternative that is significantly less punitive than the application of definitive anti-dumping duties'. Almost all EU brandy is cognac produced in France, exports of which to China are worth €1.4billion per year. Beijing launched an investigation last year into EU brandy, months after the bloc undertook a probe into Chinese electric vehicle (EV) subsidies.
Yahoo
04-07-2025
- Business
- Yahoo
China to impose duties of up to 34.9% on EU brandy, starting July 5
By Casey Hall SHANGHAI (Reuters) -China's Commerce Ministry issued its final ruling on brandy originating in the European Union on Friday, implementing duties of up to 34.9% for a period of five years starting from July 5, 2025, the ministry said in statement. Some companies that had made minimum price commitments, including Pernod Ricard-owned Martell & Co and Remy Cointreu's Remy Martin, will be spared the higher tariff rate, according to the announcement, unless those commitments were breached. The ruling follows an investigation into European brandy, most of it cognac from France, first launched last year. French cognac makers have complained they are collateral damage in a broader trade row between Brussels and Beijing over import tariffs imposed on China-made electric vehicles. China implemented the duties on cognac following an earlier investigation last year into brandy imports, after the European Union accused Beijing of giving its auto industry unfair subsidies and imposed duties on imports of Chinese-made EVs. Monthly cognac exports to China, the world's most valuable market for the spirit, have fallen by as much as 70% due to the trade dispute, according to data from the Bureau National Interprofessionnel du Cognac (BNIC), an industry body. Last week Reuters reported that French cognac makers had reached a tentative deal on minimum import prices for the Chinese market, but that China would only finalise the deal if progress was made regarding EU tariffs on Chinese-made EVs. The news will likely be welcomed by brandy distillers that have also seen sales slow in the United States, the world's biggest cognac market by volume, as a result of inflation and economic uncertainty. 登入存取你的投資組合
