PRESS RELEASE
29.08.2024
European wine spirit, marc, and brandy producers strongly oppose the potential imposition of anti-dumping duties in China
The Chinese Ministry of Commerce (MOFCOM) has just announced that additional duties averaging 34.8% could be applied at the end of the investigation on imports of European wine spirit, marc, and brandies, despite the clarifications provided during the procedure. If these duties were definitively imposed, they would severely impact the export sectors concerned. Cognac and Armagnac producers are calling on French and European authorities to find a solution within the next two months.
The Chinese Ministry of Commerce recently announced additional taxes averaging 34.8% on imports of European wine, marc, and brandies. These very high and unfounded taxes could be applied as soon as Chinese authorities decide to close the ongoing investigation, which could happen at any time.
This announcement once again highlights that this is a political decision made in response to trade measures adopted by the European Commission against certain Chinese export sectors, particularly the investigation into electric vehicles. In this matter, the European Commission will confirm the final duties applied to Chinese manufacturers by October 30. The risk is therefore high, especially as Chinese authorities announce the implementation of anti-dumping duties, the potential amount of which has just been published. The next two months will be critical in seeking a coordinated solution that could lead to reconsidering this decision.
“If the announced duties are applied, they will have a considerable impact on exports of European wine-based spirits, such as Cognac or Armagnac, or grape marc to China, a highly strategic market. Local economies and tens of thousands of jobs could be directly threatened by this decision, which also foreshadows the possible extension of the trade war to other sectors. We call on the full support of France and the European Commission for immediate negotiations to promptly lift these duties.” emphasizes Gabriel Picard, President of the Federation of Wine and Spirits Exporters (FEVS).
For Florent Morillon, President of the National Interprofessional Bureau of Cognac (BNIC), “If the announced duties were applied, they would significantly affect Cognac, as China alone accounts for 25% of our exports. The entire sector would become a collateral victim of a political conflict beyond its control, which we dispute, and which would deprive Chinese consumers of a product they particularly enjoy. Our practices fully comply with international law, and we have demonstrated this throughout the procedure.”
Olivier Goujon, Director of the National Interprofessional Bureau of Armagnac (BNIA), adds: “This announcement is a hammer blow to the economic activity of the Gascony region. The Chinese market is our second-largest in value and third in volume, and it is a market of enthusiasts who are deeply attached to Made in France and the French art of living. Since the beginning of this investigation and despite our cooperation, we fear becoming victims of a power struggle entirely unrelated to our activities. We do not accept this new constraint! All of us—Chinese importers, Armagnac producers, and Chinese consumers—are being sacrificed.”
This matter is political and therefore requires a political solution as quickly as possible. European wine spirits sectors, including Cognac and Armagnac, are calling on French and European authorities to create the conditions for a dialogue with China, allowing for a reconsideration of today’s announcements within two months.
Regarding the “differentiated anti-dumping duties” imposed by the Chinese Ministry of Commerce
Today’s announcement concerns duties determined based on an anti-dumping investigation conducted since January 5, 2024, a process that led the Chinese Ministry of Commerce to analyze data from all companies in the sector, with a particular focus on three of them. These three companies are now subject to an additional duty based on a dumping margin assessed by the Chinese Ministry of Commerce. The average of these duties establishes the average duty to which all other companies are subject. Companies that were unable to fully respond to the questionnaires required by the procedure will be subject to the highest duties.
