HAIKOU, CHINA – DECEMBER 17: People buy brandy during the 26th China (Hainan) International Winter Tropical Agricultural Products Fair held at the Hainan International Convention and Exhibition Center in Haikou, China, on December 17, 2023.
Meng Zhongde|Visual China Group|Getty Images
The European Commission said on Monday it had formally filed with the World Trade Organization China’s temporary anti-dumping measures on imports of EU brandy, the latest development amid trade tensions between the two countries.
France’s trade ministry said last month it would work with the European Commission to challenge Beijing’s tariff policies after the bloc voted in favor of tariffs on Chinese-made electric vehicles.
China’s Ministry of Commerce said it had received the EU’s consultation request and would handle the matter in accordance with WTO rules.
The Ministry of Commerce stated that the temporary anti-dumping measures were implemented in accordance with Chinese law, at the request of domestic industries, and after a fair and impartial investigation. They are legal trade remedy measures and fully comply with WTO rules.
France, whose producers include LVMH, Rémy Cointreau and Pernod RicardFrance, which exports large quantities of the spirit to Asian countries, was seen as a prime target of the brandy tariffs after Paris vocally backed the European Commission’s efforts to protect the domestic electric car market.
French President Macron previously called China’s brandy investigation “pure revenge.”
China is the second largest export market for Cognac after the United States and the most profitable market for the industry. Last year, French brandy exports to China reached US$1.7 billion, accounting for 99% of China’s beverage imports.
Meanwhile, Hennessy is exploring options for bottling its cognac in China, prompting hundreds of workers at its factory in southwestern France to go on strike last week, while Rémy Martin said it would raise prices in China and could cut areas such as manufacturing and advertising spending. cost.
