PRESS RELEASE
02.05.2024
Cognac Appellation and an entire region hang on the outcoume of talks between presidents Xi Jinping and Emmanuel Macron
All those involved in the Cognac sector, and representatives of all the economic activities that depend on it, have high expectations of the exchanges that will take place between the French and Chinese presidents during their state visit on Monday May 6.
Since January 5, 2024, both Cognac and Armagnac have been subject to an anti-dumping investigation launched by the Chinese authorities. This investigation concerns European brandies exported to China and, for France, mainly Cognac and Armagnac, which account for over 95% of European brandy volumes exported to China. This procedure could result in the imposition of additional customs duties on Cognac exported to China. The consequences of such a decision would be extremely damaging for an entire region whose economy and agricultural activity are based on Cognac sales, while this market accounts for almost 25% of the sector’s total exports.
Discussions in recent weeks have shown that President Xi’s state visit to France on May 6 offers a unique opportunity for agreement. This deadline, during which the subject is due to be discussed, is therefore a critical moment for an entire region, whose future depends in large part on the procedure being brought to a halt.
The Bureau National Interprofessionnel du Cognac (BNIC) and all those involved in the Cognac sector have been working hard to ensure that the French government supports this political and diplomatic issue, with a view to suspending this unjustified investigation. Numerous high-level contacts have taken place between French and Chinese authorities over the past few weeks.
Cognac represents over 70,000 direct and indirect jobs in its production area and in France, and generated 3.35 billion euros in exports in 2023. After two record years following the disruption caused by Covid, since 2022 it has been facing the slowdown in the global spirits market. The resilience of Cognac players means maintaining their export positions, particularly in their second-largest market, China. The Bureau National Interprofessionnel du Cognac (BNIC), the Bureau National Interprofessionnel de l’Armagnac (BNIA) and the Fédération des Exportateurs de Vins et Spiritueux (FEVS) have been following this procedure hand in hand since its launch last January.
