France’s Foreign Minister Jean-Noel Barrot will visit China on March 27-28 to address trade tensions impacting the cognac industry. Exports have plummeted by 60% as the industry faces challenges from tariffs imposed by both China and the United States, which are critical markets for cognac. Without intervention, the situation could lead to significant job losses.
France’s Foreign Minister Jean-Noel Barrot is scheduled to visit China on March 27 and 28, as confirmed by Florent Morillon, head of the cognac lobby group BNIC. This visit aims to address escalating trade tensions between the European Union and China. Morillon emphasized the plight of the cognac industry, which faces significant challenges due to trade disputes involving both China and the U.S.
Consequently, exports of cognac to China have decreased by 60% over the past four months. Morillon articulated that the French cognac sector is critical, with the U.S. and China accounting for 70% of sales, jeopardizing jobs and the regional economy if solutions to these trade conflicts are not reached.
Cognac’s sales decline stems from China imposing temporary anti-dumping measures as a response to EU tariffs on Chinese electric vehicles. If no resolution occurs, these measures may become permanent next month. Additionally, President Trump has threatened to impose a staggering 200% tariff on European wine and cognac imports, which could devastate the market. Morillon asserted that such tariffs would eliminate sales in the U.S., which amounted to nearly 1 billion euros last year.
In conclusion, the planned visit of the French Foreign Minister to China underscores the urgent need to address trade tensions impacting the cognac industry. The decline in exports and the looming threat of tariffs from both China and the U.S. place the future of this vital sector at risk. Immediate action is essential to prevent significant job losses and protect the livelihoods dependent on cognac production.
Original Source: www.usnews.com
