China Excludes Major Cognac Brands from New EU Brandy Tariffs Amid Trade Tensions

Cognac Industry Avoids Tariffs

• 💡 Major French cognac producers, including Hennessy, Remy Cointreau, and Martell, have been excluded from new Chinese tariffs on EU brandy.
• 🎯 This exclusion comes as part of an agreement where 34 European brandy makers, including French ones, committed to an agreed minimum price.
• ✅ The French foreign minister welcomed the deal, stating it is a major step forward and has saved the industry.

Trade Dispute Background

• ⚠️ Beijing launched an anti-dumping probe on EU brandy in January last year.
• ⚡ This probe was widely seen as a repost to an EU probe into Chinese electric vehicle subsidies.
• 💬 China and Europe have found an appropriate solution to brandy-related issues, with hopes to import more high-quality French products.

Industry Reactions and Future Outlook

• 🤝 The BNIC (France's cognac makers association) confirmed that some companies agreed to price demands.
• 📈 The EU Spirits Association, Spirits Europe, welcomed China's move but urged Beijing to drop all punitive measures.
• 🇫🇷 China also expressed support for successful Chinese companies investing in France.