PRESS RELEASE
18.09.2024
Chinese taxes : the FEVS and the interprofessions of Cognac and Armagnac appeal to the french Prime minister
China is preparing to impose additional taxes on Armagnac, Cognac, and French brandies in retaliation for the additional taxes that will be imposed on its electric vehicles by the European Union, with the support of France. We are faced with a fait accompli: an unfavorable decision has been made early on by French authorities, in which it seems our sectors have been deemed expendable in this standoff. The sectoral and regional impact of the announced measures will be immense.
Despite this, the European Commission has decided to move forward with a vote on September 25 to confirm the final tariffs that will be imposed on Chinese electric vehicles imported into the EU. As both issues are entirely linked, Chinese authorities are ready to respond immediately by targeting us with additional taxes that will cause us to lose, in the short term, a market vital to us. Despite months of warnings, nothing seems to be halting the dangerous spiral into which we are being dragged, despite the fact that we have nothing to do with these political issues. We are not being heard.
While the Chinese Minister of Commerce is currently in Brussels for discussions with European authorities, and other European countries are adjusting their approach to avoid the harmful effects on their economies of an escalating trade war with China, we are making a solemn appeal to our new Prime Minister to act swiftly to prevent a catastrophe that is foreseeable but still avoidable.
We specifically request the following from him:
1. The fate of Cognac, Armagnac, and French brandies must be raised by French authorities during the discussions currently taking place in Brussels between the European Commission and the Chinese Minister of Commerce. It would be incomprehensible if only the automobile issue were debated in what could be a last-chance discussion, at the expense of our sectors and the regions that depend on them.
2. The date of the final vote on taxing Chinese cars, arbitrarily moved up by the European Commission to September 25, must be postponed. The newly appointed Prime Minister and the new French government, which is in the process of being formed, cannot be cornered. As tens of thousands of jobs in France depend on this, and given that the context that prevailed when the procedures in question were launched has significantly changed, they need more time to assess the real impact of the decision that is about to be made on our sector, our region, and the French economy as a whole.
The coming days will be crucial for our sectors and for our new government. We appeal for their protection and remain fully available to define a crisis resolution that is acceptable to all.
