France and China Near Resolution on Cognac Tariff Dispute

France and China are nearing a resolution on a trade dispute over cognac imports. A Chinese investigation into potential customs duties on European cognac has been delayed by three months. This issue arose following EU tariffs on Chinese electric vehicles, affecting jobs and cognac producers.

France and China are making strides toward settling a trade conflict concerning cognac imports, as announced by France's foreign affairs minister on Friday.

Jean-Noel Barrot revealed that a Chinese investigation, which could impose permanent customs duties on European cognac, has seen a three-month delay in its conclusions. These delays come after China introduced provisional tariffs ranging from 30.6 to 39 percent on Remy Martin and other European brandies, a move that retaliated against European Union tariffs on Chinese electric vehicles.

The provisional brandy tariffs demand importers to pay a deposit to the Chinese customs agency. The industry's concern was the possibility of definitive duties following the investigation period. This sector, crucial to China as its largest consumer market, risks 70,000 jobs and impacts 270 cognac houses alongside 4,400 winegrowers if definitive duties proceed. A series of anti-dumping probes by China, beginning with brandy, target European products. During a previous state visit, French President Macron gifted cognac to China's Xi Jinping.

(With inputs from agencies.)