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Remy Martin XO Cognac. Credit: MikroKon\/ Shutterstock<\/p>\n
France has failed to find a solution to its ongoing trade spat with China, including tariffs on Cognac, the EU country\u2019s economic and finance minister Eric Lombard said today (15 May).<\/p>\n
In a speech broadcast by French network BFMTV, Lombard said following talks with China vice premier He Lifeng: \u201cThe economic dialogue, at this stage, has not allowed us to find a definitive solution to this dispute.\u201d<\/p>\n
He added, however, that the door to future talks on the matter \u201cremains open\u201d.<\/p>\n
The Cognac industry has been facing tariffs on exports to China since October, when the Asian country\u2019s commerce ministry imposed \u201cprovisional dumping measures\u201d on imports of EU-origin brandy.<\/p>\n
During the negotiations, Lombard said he \u201cwanted to emphasise the importance for us of returning to the prevailing solution before 2024\u201d.<\/p>\n
Since 11 October, companies importing products including brandy have had to pay a security deposit to Chinese authorities upon arrival.<\/p>\n
China launched its investigation last year after receiving complaints of brandy dumping from the China Liquor Industry Association. The move followed the EU\u2019s launch of an\u00a0anti-subsidy investigation<\/a>\u00a0into Chinese electric vehicles in September 2023.<\/p>\n The probe has been assessing dumping allegations made between 1 October 2022 and 30 September 2023 for EU brandy imported in containers of under 200 litres.<\/p>\n At the end of March<\/a>, reports emerged suggesting China had postponed concluding its anti-dumping investigation into EU brandy products.<\/p>\n According to news outlets\u00a0Bloomberg\u00a0and\u00a0Reuters, France\u2019s Foreign Minister Jean-No\u00ebl Barrot told journalists during a trip to China in March that the completion of the probe had been delayed by three months.<\/p>\n \u201cThis measure should give us a few months\u2019 breathing space with the reopening of duty-free sales of Cognac and Armagnac, which represent a significant volume of sales for some brands,\u201d he said in emailed comments to\u00a0Bloomberg at the time.<\/p>\n China\u2019s Ministry of Commerce announced in January that it had extended its anti-dumping probe of brandy originating from the EU by three months.<\/p>\n The investigation, launched on\u00a05 January 2024<\/a>\u00a0and initially due to last one year, was expected to be completed by 5 April.<\/p>\n Cognac makers such as Pernod Ricard had been unable to sell in duty-free channels for some time.<\/p>\n In response to the reports on China postponing its investigation, three French spirits trade bodies warned the potential delay to China\u2019s anti-dumping probe of brandy did shift the ongoing impact of Beijing\u2019s taxes on Cognac and Armagnac producers.<\/p>\n In a joint statement at the time, the Bureau National Interprofessionnel du Cognac (BNIC), Bureau National Interprofessionnel de l\u2019Armagnac\u00a0(BNIA) and F\u00e9d\u00e9ration des Exportateurs de Vins & Spiritueux de\u00a0France (FEVS) said they had been \u201cinformed\u201d about the outcomes of Barrot\u2019s visit to China.<\/p>\n The BNIC, BNIA and FEVS said their members viewed the latest developments \u201cpositively\u201d but added that \u201cin substance, these developments do not alter the situation for Cognac exporters\u201d, given the taxes they have faced on their imports to China since October.<\/p>\n \n Sign up for our daily news round-up! Just Drinks Excellence Awards – Have you nominated?<\/p>\n Nominations are now open for the prestigious Just Drinks Excellence Awards<\/strong><\/a> – one of the industry’s most recognised programmes celebrating innovation, leadership, and impact<\/strong>. This is your chance to showcase your achievements, highlight industry advancements<\/strong>, and gain global recognition<\/strong>. Don’t miss the opportunity to be honoured among the best – submit your nomination today!<\/p>\n![\"Email](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/05\/1746707888_170_newsletter-new.svg.svg+xml\")
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