China exempts major brandy makers from anti-dumping obligations in the EU
China imposed anti-dumping European brandy obligations While exempt major cognac makers who promise to maintain prices on the lowest level for five years.
The 34.9% obligation will be imposed on European brandy cargo from July 5th. statement From China’s Ministry of Commerce. The exemption applies to those who meet their price commitments, the ministry said.
Hennessy of three major cognac manufacturers – Remy Controw SA, Pernodricard SA and LVMH, is one of the producers who agreed to comply with pricing with China. The arrangement will provide a partial reprieve for businesses whose cognac cargo rushed into China after Beijing imposed a reserve obligation last year.
“The lowest price commitment regime provides more tolerant conditions for us than the decisive anti-dumping obligations announced, even if the market access they allow remains a barrier,” Florent Morillon, president of the Cognac Producers Association BNIC, said in a statement. The group will continue to push to regain unhindered access to the Chinese market, he added.
The terms of the price agreement represent “a rather favorable result, or at least a substantial punitive alternative,” compared to the announced anti-dumping obligations, Remy Cointrow said in a statement. We’re waiting for details to accurately assess the effectiveness, but we expect the impact to be far less limiting than what was expected when it was released in June.
The company’s shares eliminated an early decline of 7.2%, while LVMH and Pernod Ricard shares reduced their losses.
Hennessy’s representative declined to comment on the issue, but Pernod did not immediately comment.
Macron Meeting
By accepting the lowest prices, these cognac manufacturers can maintain their presence in the Chinese market without any additional obligations. “We are committed to providing a range of services to our customers,” said Jacques Roizen, Managing Director of China Consulting for Digital Luxury Group.
Brandy tariffs, following last year’s EU decision, have placed a high collection obligation on Chinese-made electric vehicles at 45%. China has postponed the conclusion of the cognac probe twice as it attempted to solve, among other things, alcohol and EV spats.
Chinese Commerce Minister Wang Wentao discussed two issues with the EU trade commissioner when he visited France in June. Foreign Minister Wang Yi is scheduled to meet French President Emmanuel Macron on Friday.
French industry minister Mark Ferracci told Bloomberg Television on Friday that removing tariff fights, cognacs and other goods was essential. “The trade war only creates losers, so we should not be satisfied with what was announced today by China, even if an agreement is found.”
The tension between the two trading partners is far from easing, and China is cancel The Bloomberg News reported on Friday, part of a two-day summit with European Union leaders was planned later this month.