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South China Morning Post
07-07-2025
- Business
- South China Morning Post
Why France is toasting China's new tariff on European brandy
China's new anti-dumping duty targeting European brandy unexpectedly became the toast of France over the weekend, after Beijing granted exemptions to a string of French cognac makers. The cordial reaction in Paris came as a surprise to many analysts, who had initially predicted that China's decision to impose the tariff might further raise tensions with the European Union and sour preparations for an upcoming leaders' summit in Beijing. But French leaders ended up hailing the ruling as a 'positive step', after a deal was brokered that saw major producers including Hennessy, Martell and Rémy Martin sign on to a minimum export price that exempted them from the levy. That allowed Chinese foreign minister Wang Yi to wrap up his European tour on a positive note on Sunday, with Beijing having published an official list of 34 companies exempted from the tariff and French industry insiders sharing that the move could have a huge impact. The exemptions will cover roughly 90 per cent of French cognac exports to China in volume terms, according to France's Union Générale des Viticulteurs pour l'AOC Cognac (UGVC), a producers' union with 2,000 members. French foreign minister Jean-Noël Barrot framed China's announcement as an 'agreement' reached between China and the cognac industry at a joint press conference with Wang on Friday evening, Paris time.
LeMonde
05-07-2025
- Business
- LeMonde
China imposes a tax on cognac but limits its scope
The cognac industry can kick back and have a drink. On the eve of the deadline set for Saturday, July 5, the Chinese Ministry of Commerce announced on July 4 the imposition of average customs duties of 32.2% on imports of wine-based spirits from the European Union – meaning cognac. But companies that, during the proceedings, negotiated a minimum price agreement − with price increases estimated between 12% and 16% − will be able to avoid the new tariffs. On Friday afternoon, French President Emmanuel Macron welcomed the move as "a positive step toward ending a dispute that threatened our exports," while promising to continue dialogue with Beijing. This way out is expected to benefit 34 companies, including the three major French groups: the luxury giant LVMH, the market leader with its Hennessy brand; the spirits group Pernod Ricard, owner of Martell; and its rival Rémy Cointreau, known for the Rémy Martin brand. The outcome is likely to be much harsher for about 20 smaller cognac houses, which are being hit hard. In announcing its decision, the Chinese Ministry of Commerce specified that it was ending its anti-dumping investigation into European exports of wine-based spirits, which primarily affected cognac and therefore targeted France. Beijing had launched the investigation in January 2024, in retaliation for Brussels' decision to tax imports of Chinese electric vehicles into Europe. The standoff led to the introduction of provisional taxes on cognac in October 2024, with customs duties ranging from 35% to 39%. According to the Bureau National Interprofessionnel du Cognac (BNIC, the French national cognac trade body), amounts collected before the permanent tariffs take effect should be reimbursed.
New York Times
04-07-2025
- Business
- New York Times
China Sets Steep Duties on European Brandy but Spares Biggest Producers
China said on Friday that it would impose steep duties on European brandy, mostly French Cognac, but softened the blow by sparing the largest producers after they agreed to change the prices they charged. The deal came at a delicate moment in trade relations between Europe and China as each accuses the other of dumping, of unfairly subsidizing industries and of imposing other barriers to trade. The Chinese Ministry of Commerce announced duties of up to 34.9 percent on imported European brandy, the conclusion of a dumping investigation started last year that sent shudders through the industry, particularly among French Cognac brands with extensive sales in China. Beijing imposed preliminary penalties against European brandy makers in October after the European Union voted to impose anti-subsidy tariffs on Chinese electric cars. France had led the push for the electric car tariffs, and almost all the brandy imports targeted by China come from France. But after a flurry of diplomatic efforts, the biggest European Cognac producers — including the makers of Hennessy, Martell and Rémy Martin — were spared the duties by making a 'minimum price commitment,' the Chinese Commerce Ministry said. China's foreign minister, Wang Yi, was scheduled to meet President Emmanuel Macron of France in Paris on Friday. European leaders are scheduled to be in Beijing for a summit starting July 24. Want all of The Times? Subscribe.
Business Wire
04-07-2025
- Business
- Business Wire
Price Undertaking Agreement in China for Rémy Cointreau
PARIS--(BUSINESS WIRE)--Regulatory News: As part of the anti-dumping procedure initiated on January 5, 2024, by the Ministry of Commerce of the People's Republic of China (MOFCOM), Rémy Cointreau (Paris:RCO) announces the conclusion of an agreement between the Chinese authorities and certain cognac producers regarding 'Price Undertaking agreement' applicable to imports of grape-based spirits in containers of less than 200 liters originating from the European Union. Under this agreement, certain cognac stakeholders affected by the procedure commit, each according to their own terms, to comply with a minimum import price in China. In return, the 'definitive' anti-dumping duties that were to be imposed on European exports will not be applied (for reference, the official 'provisional' rate was 38.1% for Rémy Cointreau's cognac division since October 11, 2024, in the form of a guarantee-backed deposit, and was reduced to 34.3% in its final version). This agreement in no way constitutes an acknowledgment of dumping practices. While the commercial terms of this agreement are less favorable than those that were in effect prior to the initiation of the investigation, they nonetheless represent a significantly more favorable outcome, or at the very least, a substantially less punitive alternative, compared to the imposition of definitive anti-dumping duties. At this stage, Rémy Cointreau is still awaiting further details regarding the practical arrangements for implementing this agreement, in order to be able to assess the impacts accurately. Thanks to this agreement, these impacts are expected to be far less restrictive than those initially anticipated at the time of the annual results publication on June 4, 2025, and will enable the strengthening of some investments in China. As a result, Rémy Cointreau will update its annual guidance when publishing first-quarter results on July 25. About Rémy Cointreau All around the world, there are clients seeking exceptional experiences; clients for whom a wide range of terroirs means a variety of flavors. Their exacting standards are proportional to our expertise – the finely-honed skills that we pass down from generation to generation. The time these clients devote to drinking our products is a tribute to all those who have worked to develop them. It is for these men and women that Rémy Cointreau, a family-owned French Group, protects its terroirs, cultivates exceptional multi-centenary spirits and undertakes to preserve their eternal modernity. The Group's portfolio includes 14 singular brands, such as the Rémy Martin and LOUIS XIII cognacs, and Cointreau liqueur. Rémy Cointreau has a single ambition: becoming the world leader in exceptional spirits. To this end, it relies on the commitment and creativity of its 1,856 employees and on its distribution subsidiaries established in the Group's strategic markets. Rémy Cointreau is listed on Euronext Paris.
South China Morning Post
01-07-2025
- Business
- South China Morning Post
China offers tax refund to French cognac makers amid EU brandy anti-dumping probe: source
Beijing has extended an olive branch to French cognac producers by promising a 'significant' tax refund if they cooperate with its anti-dumping investigation into European Union brandy sold in China, according to an industry source with knowledge of the matter. Major brands Hennessy, Martell and Rémy Martin have been offered the terms, said the person, who spoke anonymously due to the sensitivity of the issue. To qualify, producers must agree to Beijing's demands, commit to a minimum selling price and refrain from dumping practices, the person said, adding that negotiations were ongoing but the refunded amount should be 'pretty significant'. Last October, Beijing imposed temporary anti-dumping duties on brandy and cognac imported from the EU in retaliation for the bloc's tariffs on made-in-China electric vehicles. The investigation into European cognac, mainly produced in France, will conclude on July 5. If no agreement is reached by then, the temporary tariffs of up to 39 per cent could become permanent. The Bureau National Interprofessionnel du Cognac (BNIC) – France's leading representative for the cognac industry – said both sides had negotiated a preliminary agreement to establish a minimum import price, pending approval from Chinese authorities.
