PRESS RELEASE
22.05.2024
Chinese anti-dumping investigation: the Cognac appellation confirms its serious concerns
The anti-dumping case was indeed discussed during the meeting between Presidents Xi and Macron, which the Cognac sector appreciates. However, the interprofession confirms its fear of imminent anti-dumping duties and calls on French authorities to implement solutions to ensure that one of France’s top export products is not sacrificed.
Since the investigation began on January 5, 2024, Cognac exporters, BNIC, and FEVS have rigorously participated in the process to demonstrate the absence of dumping in their products. The response phase to the questionnaires sent by the Chinese Ministry of Commerce to the concerned operators ended on May 20, with 60 companies submitting their files. Chinese investigators may soon visit Cognac. Representatives of BNIC and the concerned operators have also requested to be heard in Beijing to prove that the allegations made by the complaint’s authors, which prompted the Chinese administration’s actions, are unfounded.
On May 6, during the meeting between President Emmanuel Macron and President Xi Jinping of the People’s Republic of China, the anti-dumping investigation against European brandies, including Cognac, was discussed. According to press statements, the Chinese President expressed his desire not to implement provisional anti-dumping duties.
The fact that this issue was discussed during the meeting is seen as positive by the Cognac sector. The assurance given by the Chinese President is helpful and confirms that Cognac exporters will not be subject to provisional customs duties in the coming days. However, this commitment does not rule out the adoption of definitive duties once the Chinese authorities conclude their investigation, which could happen at any moment.
Indeed, all commentators agree that there is a link between the Chinese anti-dumping investigation targeting Cognac and the European anti-subsidy investigation targeting Chinese electric vehicles. It is believed that the European Commission plans to impose additional customs duties on Chinese electric cars starting in July. This prospect greatly worries the Cognac industry, which understands that the commitment made by the Chinese President to the French President does not protect it from the immediate imposition of definitive anti-dumping duties on its products.
Any arbitration that may have already been made on this issue should be reconsidered so that our industry and other affected production areas do not become collateral victims of a dispute that does not concern them. It is clear that the Chinese authorities aim to send a message to the French government by targeting Cognac. It is up to our authorities to implement solutions to ensure that one of France’s top export products is not sacrificed.
Cognac represents over 70,000 direct and indirect jobs in its production area and across France, generating €335 billion in exports in 2023. After two consecutive record years and disruptions related to COVID-19, it has faced a slowdown in the global spirits market since 2022. The resilience of Cognac stakeholders requires maintaining their export positions, particularly in their second-largest market, China. Preserving the balance of the entire industry depends on it.
