EU challenges tariffs on Chinese brandy at WTO (#1681635)

The EU Commission said on Monday it had formally submitted provisional anti-dumping measures imposed by China on EU brandy imports to the World Trade Organization, the latest development amid trade tensions between the two blocs.

France's Trade Ministry said last month it would work with the European Commission to challenge Beijing's tariffs, which came after the European Union voted in favor of tariffs on electric vehicles made in China.

China's Ministry of Commerce said it had received a consultation request from the EU and would handle the matter in accordance with WTO rules.

“The provisional anti-dumping measures were implemented based on Chinese law, at the request of domestic industries, after a fair and impartial investigation, and are legitimate trade remedies fully in line with WTO rules,” the ministry said.

France, whose producers including LVMH, Remy Cointreau and PernodRicard export huge quantities of spirits to the Asian country, was seen as the main target of brandy tariffs following Paris' open support for the Commission's efforts to protect the market. internal of electric vehicles.
French President Emmanuel Macron previously called China's brandy investigation “pure retaliation.”

China is the second largest export market for cognac after the United States and the most profitable in the industry. Shipments of French brandy to China reached $1.7 billion last year and accounted for 99% of Chinese imports of the drink.

Meanwhile, Hennessy is exploring options to bottle cognac in China, prompting hundreds of workers at its plant in southwestern France to go on strike last week, while Remy said it would raise prices in China and could cut costs. in areas such as manufacturing and advertising spending. .