French Foreign Minister’s Visit to China Amid Cognac Trade Disputes

French Foreign Minister Jean-Noel Barrot plans to visit China on March 27-28 to discuss trade tensions impacting the cognac industry, which has seen a 60% drop in exports to China amid trade disputes with both China and the U.S. The industry warns of severe job losses without resolution.

On March 27 and 28, France’s Foreign Minister, Jean-Noel Barrot, is scheduled to visit China, as announced by Florent Morillon, head of the cognac lobby group BNIC. This visit is part of efforts to alleviate trade tensions between the European Union and China, which have adversely affected the cognac industry.

The French cognac sector faces significant challenges stemming from two major international trade disputes—one involving the EU and China, and the other between the EU and the administration of former U.S. President Donald Trump. “We are taken hostage in this trade dispute,” stated Morillon, referring to a troubling 60% decline in sales to China over the past four months.

A French diplomatic source confirmed the itinerary of Minister Barrot, which includes stops in Indonesia and Singapore prior to his visit to China. Morillon emphasized that the U.S. and China make up the primary markets for French cognac, constituting 70% of total sales. He warned of dire consequences for the industry if the disputes remain unresolved.

The cognac industry could face severe repercussions, as Morillon remarked, “This means 70% of the jobs and the ecosystem in the region would be annihilated.” Currently, China has enacted temporary anti-dumping measures against EU brandy imports, following the EU’s decision to impose tariffs on Chinese electric vehicles, severely impacting cognac sales.

BNIC representatives warned that these temporary measures might solidify next month if a resolution is not reached. Furthermore, in a related matter, President Trump recently threatened a staggering 200% tariff on various European imports, including wine and cognac. “200% would mean we won’t sell one single bottle in the United States,” Morillon lamented, highlighting the importance of maintaining the crucial export market valued at approximately 1 billion euros ($1.09 billion) last year.

In summary, the upcoming visit by France’s Foreign Minister to China is a crucial step in addressing pressing trade disputes affecting the French cognac industry. With significant declines in exports and looming tariffs from both China and the United States, the sector faces existential challenges. The urgency for resolution cannot be overstated, as the livelihoods of many depend on access to these key markets.

Original Source: www.usnews.com