French Foreign Minister Jean-Noel Barrot is set to visit China on March 27-28 amid trade tensions affecting the cognac industry. Exports have dropped by 60% due to disputes with China and potential tariffs from the United States, prompting concerns over job losses. BNIC highlights the need for resolution to safeguard the sector’s future.
France’s Foreign Minister, Jean-Noel Barrot, is scheduled to visit China from March 27 to 28, as announced by the head of the cognac lobby group, BNIC. This visit occurs amidst ongoing trade tensions between the European Union and China, which have adversely affected the French cognac industry. The industry has already experienced a 60% reduction in exports to China over the past four months, as highlighted by BNIC’s president, Florent Morillon, during a news conference.
Morillon stated that the cognac sector is essentially being used as leverage in a larger trade dispute, with both China and the United States being pivotal markets for French cognac. Together, these regions account for 70% of French cognac sales. He expressed concerns that continued disputes could jeopardize jobs and the overall ecosystem of the cognac industry, emphasizing the severe implications for regional employment.
The downturn in cognac exports has been intensified by China’s temporary anti-dumping measures on EU brandy, introduced following the EU’s decision to impose tariffs on Chinese-made electric vehicles. If a resolution is not achieved soon, these measures could become permanent, according to BNIC representatives. Furthermore, the threat of a 200% tariff on wine and cognac imports from Europe by President Trump poses an additional risk for the industry, prompting further alarm within the cognac sector.
In summary, the visit of French Foreign Minister Jean-Noel Barrot to China is a significant diplomatic effort aimed at addressing the contentious trade disputes affecting the cognac industry. With exports severely impacted and job loss on the horizon, the industry’s leaders emphasize the urgency of finding solutions to restore trade balance and protect their critical markets.
Original Source: www.usnews.com
