French Foreign Minister to Visit China to Negotiate Cognac Tariffs

French Foreign Minister Jean-Noël Barrot plans to visit China soon to negotiate the resolution of Chinese tariffs on French cognac and Armagnac. These tariffs were imposed as retaliation for EU tariffs on Chinese electric vehicles. France denies any wrongdoing regarding government subsidies, as the cognac industry faces significant export challenges due to these trade disputes.

French Foreign Minister Jean-Noël Barrot is set to visit China in the coming weeks to discuss the tariffs imposed by Beijing on French cognac and Armagnac. These tariffs were established as anti-dumping measures since October 2024, following the European Commission’s decision to levy tariffs on Chinese electric vehicles. Barrot expressed optimism that his trip would facilitate advancements on these pressing trade issues.

The tariffs on French brandies have sparked contention, particularly as France denies the allegations of government subsidies in cognac production, contradicting claims made by Chinese authorities. The sanctions have been deemed a retaliatory response from Beijing after the European Commission’s imposition of tariffs on specific Chinese electric vehicle manufacturers like BYD and Geely.

The EU’s decision to impose tariffs arose from a year-long antidumping investigation by the Commission, initiated at France’s urging in mid-2023. This situation has complicated trade relations, especially as ex-prime minister Michel Barnier was previously slated to negotiate with China but was sidelined after a no-confidence vote in December, lowering the priority of resolving these trade disputes under the new Prime Minister François Bayrou.

The French cognac industry is particularly vulnerable, with an estimated 98% of its production being exported annually, and significant portions shipped to China and Singapore. Barrot’s diplomatic efforts could aim to restore favorable trade conditions for French cognac in the face of ongoing tariffs that directly impact the industry.

During his recent engagements, Barrot also met with various international figures, including officials associated with the U.S. administration, suggesting broader discussions about global trade dynamics and geopolitical factors are underway. The ongoing negotiations surrounding cognac tariffs may extend beyond mere economic implications, reflecting the intertwined nature of international relations and trade policies.

In summary, the upcoming visit of French Foreign Minister Jean-Noël Barrot to China aims to address the tariffs imposed on French cognac and Armagnac, which have been contentious since October 2024. The backdrop of this issue includes retaliatory actions linked to European Union trade decisions against Chinese electric vehicles. France’s position against subsidy allegations further complicates the diplomatic landscape, while the cognac industry remains significantly impacted by these tariffs. As the situation develops, Barrot’s negotiations could prove vital in reshaping trade relations between France and China.

Original Source: www.euractiv.com