The main cognac exporters will finally escape Chinese taxes

It is a relief for many cognac producers. Beijing concluded on Friday, July 4, its anti-dumping survey on European wine brandies on Friday, by introducing customs duties from which around thirty producers, including large exporting houses, via a more favorable negotiated price regime. “The authority responsible for the investigation concluded that there was a dumping on the brandy imported from the EU”announced the Chinese Ministry of Commerce, evoking a “Substantial damage” For the Chinese sector. But he published in parallel a list of 34 companies with which he agreed on new prices, this regime replacing customs duties.

The three main exporters of Cognac – Hennessy (LVMH group), Martell (Pernod Ricard) and Rémy Martin (Rémy Cognac) are concerned, as an individual group – Hennessy (LVMH group) – as well as 24 Armagnac producers who negotiated a collective agreement via the Cognac National Interprofessional Bureau. According to the Cognac national interprofessional office (Bnic), the price increases conceded are “Less unfavorable” that the taxes initially envisaged by China.

This result, obtained after months of diplomatic efforts, constitutes “A positive step to put an end to this dispute that threatened our exports”greeted on x Emmanuel Macron, promising to continue the dialogue with Beijing to support the sector.

The Minister of Foreign Affairs, Jean-Noël Barrot, welcomed a “Very wide field of exemptions” customs duties “For many actors in the Cognac and Armagnac sector”. He pointed, however “Several unresolved important points”Including the exclusion of certain actors from the prices agreement – they will be subject to taxes greater than 30% from Saturday. Chinese diplomacy chief Wang Yi must meet Jean-Noël Barrot, before being received at the Élysée by Emmanuel Macron.