French Foreign Minister Jean-Noel Barrot’s visit to China on March 27-28 aims to address trade tensions affecting the cognac industry. The sector has faced a 60% drop in exports to China and could face further challenges due to U.S. tariffs. The survival of the industry and thousands of jobs is at risk if these disputes remain unresolved.
France’s Foreign Minister Jean-Noel Barrot is scheduled to visit China on March 27 and 28, as reported by the BNIC head, Florent Morillon. This visit aims to address the ongoing trade tensions between the European Union (EU) and China, which have significantly impacted France’s cognac industry.
Currently, the EU cognac sector is affected by two major international trade disputes, one with China and another involving the U.S. administration. Morillon indicated that the cognac exports to China have plummeted by 60% over the last four months, emphasizing the industry feels ‘hostage’ to these disputes.
The French cognac market relies heavily on both the U.S. and China, which together account for 70% of sales, leading Morillon to caution that the industry’s survival is at stake. He stated that failing to resolve these trade issues could potentially annihilate 70% of the jobs and the associated ecosystem.
China reacted to the EU’s tariffs on Chinese electric vehicles by implementing anti-dumping measures on EU brandy imports. If these measures are not addressed, they may become permanent next month, according to BNIC representatives.
Additionally, President Trump’s recent threat of a 200% tariff on European wine and cognac poses further risks, with Morillon noting that such a tariff would completely devastate sales in the U.S. market, which generated approximately 1 billion euros in cognac exports last year.
In summary, France’s Foreign Minister is set to visit China to address significant trade tensions affecting the cognac industry. The ongoing disputes with both the EU and U.S. represent critical challenges that, if unresolved, could severely impact export sales and jeopardize thousands of jobs in the sector. Urgent action is necessary to mitigate these trade conflicts and protect the industry’s future.
Original Source: www.usnews.com
