French minister to challenge China over ‘political’ cognac duties

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PARIS (Reuters) – France will challenge China over its import duties on brandy, which Paris calls political and unjustified, when junior trade minister Sophie Primas visits Shanghai next week, two French diplomatic sources said on Tuesday.

China imposed temporary anti-dumping measures on imports of brandy from the European Union early this month after the bloc voted for tariffs on Chinese-made electric vehicles (EVs). The measures have hit French cognac hardest.

Primas will meet China’s Commerce Minister Wang Wentao during a three-day visit to Shanghai from Sunday to Tuesday, during which she will visit the China International Import Expo (CIIE), the sources said.

One diplomat described the Chinese measures as acts of retaliation that lacked justification and which were an “unacceptable manipulation of trade rules”.

The European Commission said it would challenge the provisional anti-dumping measures on EU brandy imports at the World Trade Organization.

French Cognac shipments to China reached $1.7 billion last year and accounted for 99% of the country’s brandy imports.

China’s move prompted outcry in the French Cognac industry, for whom China is the second largest export market after the United States and the most profitable one.

France was among the strongest supporters of European tariffs on Chinese-made EVs. The additional duties of up to 35% are expected to come into effect from Thursday.

“China wants to make France pay,” the same diplomat said.

Primas will also meet representatives from the dairy and meat sectors, also at the heart of trade disputes between France and China.

China opened an anti-subsidy probe into imported EU dairy products in August and an investigation focusing on pork intended for human consumption in June.