Cognac, Armagnac’s caution after French government China talks

Three French spirits commercialized bodies person warned the imaginable hold to China's anti-dumping probe of brandy does not alteration the ongoing antagonistic interaction of provisional taxes connected Cognac and Armagnac producers.

According to reports from Bloomberg and Reuters on Friday (28 March), during his trip, France's Foreign Minister Jean-Noël Barrot told journalists the completion of China's probe into EU brandy products had been delayed 3 months.

“This measurement should springiness america a fewer months’ breathing abstraction with the reopening of duty-free income of Cognac and Armagnac, which correspond a important measurement of income for immoderate brands,” helium said successful emailed comments to Bloomberg.

In a associated connection yesterday (31 March), the Bureau National Interprofessionnel du Cognac (BNIC), Bureau National Interprofessionnel de l'Armagnac (BNIA) and Fédération des Exportateurs de Vins & Spiritueux de France (FEVS) said they had been "informed" astir the outcomes of Barrot's sojourn to China.

The 3 groups said they were alert of an announcement from Chinese authorities that last duties would not beryllium brought into unit connected 5 April, which "potentially opens the doorway to different hold of the investigation" to 5 July.

They besides confirmed being informed astir "the anticipation of selling the Cognac presently stored successful Chinese ports done the duty-free channel".

The BNIC, BNIA and FEVS said Cognac and Armagnac manufacture members viewed the latest developments "positively", but added that "in substance, these developments bash not change the concern for Cognac exporters," springiness the provisional taxes they person faced connected their imports to China since October.

In October, China’s commerce ministry imposed “provisional dumping measures” connected imports of EU-origin brandy.

Since 11 October, companies importing products including brandy person had to wage a information deposit to Chinese authorities upon arrival.

The sum of the deposit is equivalent to tariffs recommended by the commerce ministry successful August pursuing the merchandise of a preliminary study of its investigation.

"For Cognac alone, these taxes person efficaciously excluded them from their second-largest market, resulting successful a 72% driblet successful shipments, peculiarly for the period of February 2025 alone," the commercialized bodies said successful their associated statement.

China launched its probe past twelvemonth aft receiving complaints of brandy dumping from the China Liquor Industry Association. The determination followed the EU’s motorboat of an anti-subsidy probe into Chinese electrical vehicles successful September 2023.