Foreign Minister Jean-Noel Barrot has secured a temporary reprieve for French cognac makers during his visit to China, delaying additional customs duties for three months.
French Foreign Minister Jean-Noel Barrot announced a positive development for French distilleries this weekend, stating that China has agreed to delay the potential permanent application of additional customs duties on French cognacs for three months.
"This is a significant first step towards resolving this dispute," Barrot said during his visit to China.
Before arriving in Beijing on Friday, France's cognac industry faced the imminent and definitive application of duties following an antidumping investigation, which Paris contests. However, Barrot's visit brought good news.
"I'm pleased to confirm that at the highest levels, I was assured this scenario will not happen immediately. Instead, the conclusions of the investigation will be postponed for three months," he said.
France says still 'open' to negotiation over China's brandy tariffs
When asked about what might happen after this three-month reprieve, Barrot acknowledged that the outcome remains uncertain but expressed optimism.
"This delay is a crucial first step, and we're committed to taking further actions to fully resolve this issue," he said, noting that the investigation will conclude in three months' time.
"The Chinese authorities will then make decisions based on the investigation's findings," he added. "We'll continue our efforts in both Paris and Beijing, thanks to the hard work of our ambassador and all stakeholders involved".
French cognac workers protest China bottling plan amid tariff threat
'Unfair competition'
Since October, European brandy exports to China have faced duties in response to EU tariffs on Chinese electric vehicles, which were imposed due to claims of unfair competition.
This measure has particularly impacted French cognac makers, who rely on exports for 98 percent of their sales. Cognac constitutes the majority of EU brandy exports to China.
In February, the French cognac industry reported losing €50 million monthly due to the anti-dumping duties and appealed for government support.
Barrot's announcement came at the end of his Asian tour, which included stops in Singapore, Jakarta, Beijing, and Shanghai.
