French cognac producers are 'deeply' worried about the results of a Chinese probe into European cognac imports, a trade body said, after the European Commission imposed tariffs on imports of Chinese electric vehicles.
The European Commission told automakers on Wednesday (12 June) it would impose extra duties of up to 38.1% on imported Chinese electric cars from July, risking retaliation from Beijing which called the move protectionist.
China already launched an anti-dumping investigation on brandy imported from the European Union in January, in a move seen as a response to the widening trade disputes between Beijing and Brussels.
Brandy Exports
Almost all European brandy exported to China is made in France, with both Pernod Ricard and Rémy Cointreau earning significant revenue in the Asian market.
"We take note of the European decision and once again reiterate our deepest concern regarding the consequences for the anti-dumping investigation launched by China on European brandy," said Florent Morillon, president of the Bureau National Interprofessional du Cognac.
French President Emmanuel Macron last month thanked his Chinese counterpart Xi Jinping for his "open attitude" regarding provisional measures on cognac, relayed during a state visit to Paris.
High Chinese tariffs on EU brandy would leave French companies with vast amounts of cognac that could be hard to sell elsewhere, according to Reuters' calculations, analysts, and investors who fear firms could be forced to discount.
Elsewhere, Australian wine makers shipped wine worth A$86 million (€52.9 million) to China in the month after Beijing lifted tariffs and should be confident of bumper sales going forward, the trade minister said.
