China, France search decision on brandy tariffs as commerce talks proceed

China and France have agreed to resolve their escalating commerce tensions by means of dialogue, Beijing’s overseas ministry stated Friday, providing cautious optimism for a deal on punitive Chinese language tariffs focusing on European brandy, notably French cognac.

The announcement follows high-level talks this week between Chinese language Commerce Minister Wang Wentao and French Commerce Minister Laurent Saint-Martin on the sidelines of an OECD convention in Paris. Technical discussions have additionally been underway in Beijing, the place Chinese language officers reportedly signaled a willingness to settle the dispute, although some sticking factors stay.

The most recent spherical of negotiations have raised hopes of a settlement, two trade sources with data of the discussions stated.

”The 2 sides have reached consensus on resolving financial and commerce points by means of dialogue and session”, the Chinese language overseas ministry stated after a name between the Chinese language and French overseas ministers.

Beijing imposed anti-dumping duties of as much as 39% on European brandy earlier this yr — measures extensively seen as retaliation for EU tariffs focusing on Chinese language electrical car exports. France, the main cognac producer, has been most affected, with main gamers like LVMH’s Hennessy, Pernod Ricard’s Martell, and Rémy Cointreau experiencing a decline in gross sales to China, their most dear export market by way of income.

China had initially set a remaining resolution on the duties for January, however has prolonged the deadline twice, now pushing it to July 5.

Beijing was initially meant to make a remaining resolution on the duties by January, however prolonged the deadline to April after which once more to July 5.

China is in search of to strengthen commerce ties with the 27-member bloc as relations with the US have soured within the escalating commerce battle.

”France is not going to compromise on … the safety of its industries, corresponding to cognac,” French commerce minister Laurent Saint-Martin stated after talks with Wang on Wednesday.

Chinese language officers, in the meantime, signalled to trade officers throughout three rounds of technical conferences in Beijing this week they wished to settle the matter, one of many sources stated, however added some sticking factors remained.

With annual imports of round $1.7 billion final yr, China is the French brandy trade’s most necessary measured by worth and the second-largest by quantity after the US.

With inputs from companies