PRESS RELEASE
31.10.2024
URGENCY OF A NEGOTIATED DIPLOMATIC SOLUTION BETWEEN FRANCE AND CHINA
TO AVOID THE PERMANENT IMPOSITION OF COGNAC AND ARMAGNAC DUTIES
Since October 11, the Cognac and Armagnac sectors, along with all EU wine spirits, grape marc brandies, and other brandies, have been subjected to a deposit guarantee for their exports to China, which have been immediately impacted.
We are now concerned about the imminent imposition of definitive duties on our products, which would have far more severe consequences for our sectors and regions.
The visit to China by Madame Sophie Primas, Minister Delegate for Foreign Trade, during the Shanghai CIIE, is of paramount importance: it must help lift the measures on our spirits.
The exchanges in the coming days will be crucial. Today’s meeting with Sophie Primas allowed us to reaffirm our expectations for her trip. We have scheduled a follow-up meeting upon her return to assess the discussions she will have with Chinese authorities, so we can share this information with stakeholders in our sectors and regions.
The preservation of the balance in our sectors depends on maintaining access to the Chinese market. China is the largest consumer market for Cognac by value. The exclusion from this key market would affect 70,000 direct and indirect jobs, 270 Cognac houses, and 4,400 winegrowers.
For Armagnac, China represents the second market by value and the third by volume, accounting for 10 to 15% of the sector’s exports. This would directly impact an entire economy, including more than 50 Armagnac houses that have been exporting to this market for over 20 years.
