The Prague Post - France praises China Cognac progress, warns of unresolved issues

EUR -
AED 4.325007
AFN 82.242498
ALL 97.861399
AMD 452.456982
ANG 2.107236
AOA 1079.744921
ARS 1461.909869
AUD 1.797604
AWG 2.122399
AZN 2.006382
BAM 1.954671
BBD 2.376677
BDT 144.396598
BGN 1.955486
BHD 0.443838
BIF 3506.77453
BMD 1.177475
BND 1.499102
BOB 8.134129
BRL 6.381095
BSD 1.177095
BTN 100.459829
BWP 15.590995
BYN 3.852093
BYR 23078.508139
BZD 2.364434
CAD 1.602537
CDF 3397.015527
CHF 0.934174
CLF 0.028542
CLP 1095.275848
CNY 8.437084
CNH 8.437609
COP 4709.946719
CRC 594.444035
CUC 1.177475
CUP 31.203085
CVE 110.201349
CZK 24.649307
DJF 209.261303
DKK 7.462017
DOP 70.447814
DZD 152.345163
EGP 58.120021
ERN 17.662124
ETB 163.360876
FJD 2.63725
FKP 0.862468
GBP 0.862742
GEL 3.203192
GGP 0.862468
GHS 12.182705
GIP 0.862468
GMD 84.19399
GNF 10209.103348
GTQ 9.05058
GYD 246.269849
HKD 9.242978
HNL 30.754237
HRK 7.533842
HTG 154.547454
HUF 398.545235
IDR 19066.851138
ILS 3.939761
IMP 0.862468
INR 100.67593
IQD 1541.976634
IRR 49601.130791
ISK 142.404269
JEP 0.862468
JMD 187.881482
JOD 0.834876
JPY 170.14454
KES 152.083112
KGS 102.970633
KHR 4729.268433
KMF 492.184923
KPW 1059.684191
KRW 1604.7339
KWD 0.359472
KYD 0.981033
KZT 611.295774
LAK 25364.811057
LBP 105466.644517
LKR 353.166016
LRD 236.008673
LSL 20.705941
LTL 3.476778
LVL 0.712243
LYD 6.340338
MAD 10.565398
MDL 19.828127
MGA 5296.828156
MKD 61.513502
MMK 2472.287743
MNT 4225.230904
MOP 9.517503
MRU 46.719016
MUR 52.927943
MVR 18.137516
MWK 2041.238342
MXN 21.94042
MYR 4.970167
MZN 75.311739
NAD 20.705501
NGN 1801.4664
NIO 43.314982
NOK 11.864285
NPR 160.730751
NZD 1.9446
OMR 0.452721
PAB 1.17712
PEN 4.173989
PGK 4.862192
PHP 66.473762
PKR 334.151398
PLN 4.24229
PYG 9380.382844
QAR 4.302215
RON 5.057495
RSD 117.165863
RUB 92.73008
RWF 1692.122651
SAR 4.415637
SBD 9.816519
SCR 16.618563
SDG 707.078009
SEK 11.259445
SGD 1.500461
SHP 0.92531
SLE 26.434748
SLL 24691.064337
SOS 672.697176
SRD 44.019944
STD 24371.353222
SVC 10.300051
SYP 15309.563345
SZL 20.688996
THB 38.138847
TJS 11.447388
TMT 4.132937
TND 3.429546
TOP 2.757769
TRY 46.973129
TTD 7.983219
TWD 34.059055
TZS 3116.429941
UAH 49.091645
UGX 4222.471502
USD 1.177475
UYU 47.242713
UZS 14781.46241
VES 128.902304
VND 30813.929528
VUV 140.274476
WST 3.063467
XAF 655.578346
XAG 0.031771
XAU 0.000353
XCD 3.182185
XDR 0.815468
XOF 655.578346
XPF 119.331742
YER 285.125976
ZAR 20.743081
ZMK 10598.691339
ZMW 28.514925
ZWL 379.146439
  • CMSC

    0.0900

    22.314

    +0.4%

  • CMSD

    0.0250

    22.285

    +0.11%

  • RBGPF

    0.0000

    69.04

    0%

  • SCS

    0.0400

    10.74

    +0.37%

  • RELX

    0.0300

    53

    +0.06%

  • RIO

    -0.1400

    59.33

    -0.24%

  • GSK

    0.1300

    41.45

    +0.31%

  • NGG

    0.2700

    71.48

    +0.38%

  • BP

    0.1750

    30.4

    +0.58%

  • BTI

    0.7150

    48.215

    +1.48%

  • BCC

    0.7900

    91.02

    +0.87%

  • JRI

    0.0200

    13.13

    +0.15%

  • VOD

    0.0100

    9.85

    +0.1%

  • BCE

    -0.0600

    22.445

    -0.27%

  • RYCEF

    0.1000

    12

    +0.83%

  • AZN

    -0.1200

    73.71

    -0.16%

France praises China Cognac progress, warns of unresolved issues
France praises China Cognac progress, warns of unresolved issues / Photo: GEORGES GOBET - AFP

France praises China Cognac progress, warns of unresolved issues

France on Friday praised steps taken by China to settle a long-running trade dispute concerning European brandies but warned that a number of "major issues" remained unresolved.

Text size:

The tentative signs of a thaw in the row over the prized tipples came as China's Foreign Minister Wang Yi was set to meet French President Emmanuel Macron and Foreign Minister Jean-Noel Barrot in Paris later Friday.

In recent months China and the European Union have butted heads over Beijing's generous subsidies for its domestic industries.

Beijing launched an investigation last year into EU brandy, months after the bloc undertook a probe into Chinese electric vehicle (EV) subsidies.

In the latest salvo in the trade spat, from Saturday China will require major European brandy exporters to raise prices or risk anti-dumping taxes of up to 34.9 percent.

But Beijing also said that several major French cognac producers had signed onto a price commitment to avoid the tariffs as long as they sell at or above an agreed minimum price.

France's umbrella cognac makers association BNIC, which includes key producers from Hennessy to Remy Cointreau and Martell, confirmed that market players had agreed to price increases in China to avoid anti-dumping taxes.

French cognac and liqueur maker Remy Cointreau pointed to "an alternative that is significantly less punitive than the application of definitive anti-dumping duties."

- 'Positive step' -

Both Macron and Barrot praised China's steps to resolve the dispute but stressed they would discuss the outstanding differences with Wang.

"This is a positive step towards resolving this dispute, which was threatening our exports," Macron said on X.

"I will continue to raise these issues with the Chinese authorities this afternoon."

In a statement to AFP Barrot said: "Several major issues remain unresolved, in particular the exclusion of certain players from the scope of the exemptions."

"We remain fully committed to reaching a definitive solution based on the conditions that existed prior to the investigation," he said.

China's Wang held fraught meetings with his counterparts during a tour of Europe earlier this week.

Almost all EU brandy is cognac produced in France, exports of which to China are worth 1.4 billion euros ($1.6 billion) per year.

French liquor giant Jas Hennessy said it would be hit with levies of 34.9 percent if it reneges on the deal.

Remy Martin will be hit with 34.3 percent and Martell 27.7 percent.

"The decision to accept the price commitment once again demonstrates China's sincerity in resolving trade frictions through dialogue and consultation," a Chinese commerce ministry spokesperson said in a statement.

However, the European Commission said Friday after the announcement that it "regrets China's decision".

"We believe that China's measures are unfair. We believe they are unjustified," said the commission's trade spokesman, Olof Gill.

"We believe they are inconsistent with the applicable international rules and are thus unfounded."

- Upcoming summit -

China has sought to improve relations with the European Union as a counterweight to superpower rival the United States.

But deep frictions remain over their economic relationship, including a yawning trade deficit of $357.1 billion between China and the EU, as well as Beijing's close ties with Russia despite Moscow's war in Ukraine.

A trade row between Beijing and the bloc erupted last summer when the EU moved towards imposing hefty tariffs on electric vehicles imported from China, arguing that Beijing's subsidies were unfairly undercutting European competitors.

Beijing denied that claim and announced what were widely seen as retaliatory probes into imported European pork, brandy and dairy products.

The bloc imposed extra import taxes of up to 35 percent on Chinese EV imports in October.

Beijing later lodged a complaint with the World Trade Organisation, which said in April that it would set up an expert panel to assess the EU's decision.

China and the EU are scheduled to hold a summit this month to mark the 50th anniversary of the establishment of diplomatic ties.

Bloomberg News reported on Friday, citing unnamed sources, that Beijing intends to cancel the second day of the summit, a sign of tensions between Beijing and Brussels.

Q.Pilar--TPP