Cognac Crisis: France's Diplomatic Mission to Ease Trade Tensions

France's cognac industry faces severe challenges due to EU-China and US-EU trade disputes. French Foreign Minister Jean-Noel Barrot plans a visit to China, amid calls to ease tensions. Trade restrictions have significantly reduced cognac exports, impacting jobs and the industry’s survival.

France's foreign minister is set to visit China on March 27-28, as the French cognac industry grapples with international trade disputes. The call from the BNIC urges an easing of tensions between the European Union and Beijing.

The industry is ensnared in separate disputes involving the EU with both China and the US under former President Trump's administration. Exports to China have plummeted by 60% over recent months, posing a severe threat to jobs and the regional economy, warns Florent Morillon, BNIC's head.

The US and China, crucial markets for French cognac, account for 70% of its sales. With anti-dumping measures by China in place, and Trump threatening hefty tariffs, the survival of the industry hangs in the balance. Without resolution, trade barriers could solidify, catastrophically impacting sales.

(With inputs from agencies.)