By
Reuters
Printed
November 25, 2024
The EU Fee mentioned on Monday it had formally introduced the provisional anti-dumping measures imposed by China on imports of EU brandy to the World Commerce Group, the newest improvement amid commerce tensions between the 2 blocs.
France’s commerce ministry mentioned final month it will work with the European Fee to problem Beijing’s tariffs, which got here after the European Union voted for duties on Chinese language-made electrical autos.
China’s commerce ministry mentioned it had obtained an EU session request and would deal with the matter based on WTO guidelines.
“The provisional anti-dumping measures were implemented based on Chinese law, at the request of domestic industries, after a fair and impartial investigation, and are legitimate trade remedies fully in line with WTO rules,” the ministry mentioned.
France, whose producers together with LVMH , Remy Cointreau and PernodRicard, export large quantities of spirits to the Asian nation, was seen as the primary targets of the brandy tariffs following Paris’s outspoken assist of the Fee’s efforts to guard the home EV market.French President Emmanuel Macron beforehand referred to as China’s brandy probe “pure retaliation”.
China is the second-largest export marketplace for cognac after america and the business’s most worthwhile. French brandy shipments to China reached $1.7 billion final yr and made up 99% of China’s imports of the drink.
In the meantime, Hennessy is exploring choices to bottle cognac in China, which prompted lots of of staff at its plant in southwestern France to go on strike final week, whereas Remy mentioned it will elevate costs in China and will lower prices in areas like manufacturing and advert spending.
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