French Foreign Minister to Visit China to Discuss Tariffs on Cognac
Jean-Noël Barrot aims to negotiate the removal of tariffs on French brandies amidst ongoing trade tensions.
French Foreign Minister Jean-Noël Barrot announced on Saturday that he will travel to China in the next few weeks to discuss the ongoing tariffs imposed by Beijing on French Cognac and Armagnac.
These tariffs were implemented in October 2024 as part of a broader response to the European Commission's decision to introduce tariffs on Chinese electric vehicles, a measure affecting companies such as BYD, Geely, and SAIC.
Barrot’s upcoming visit to Beijing is intended to address several sensitive trade issues, particularly regarding Cognac and Armagnac.
He made this announcement during the Munich Security Conference, where he indicated that the timing of his trip had been long anticipated.
Earlier in the day, he met with his Chinese counterpart, Wang Yi, signaling a continued dialogue between France and China on trade matters.
The Chinese government has accused France of providing subsidies to its Cognac and Armagnac producers, a claim that the French government has consistently denied.
The tariffs in question are seen as part of a tit-for-tat reaction to the EU’s imposition of anti-subsidy tariffs, which followed a year-long investigation initiated by the European Commission at France's behest.
This investigation culminated in a decision by the Commission to impose tariffs of up to 35.3% on certain Chinese electric vehicles in October 2024, which faced considerable criticism from German officials.
The EU's tariffs were part of efforts to address competitive imbalances in the electric vehicle market.
In light of these developments, former French Prime Minister Michel Barnier had been assigned by President Emmanuel Macron to travel to China in early 2025 to negotiate a resolution, although subsequent political events shifted priorities away from this task after Barnier was ousted following a no-confidence vote in December.
Newly appointed Prime Minister François Bayrou has since redirected focus towards managing the 2025 budget, further delaying negotiations.
According to the national trade body for the industry, around 98% of Cognac production is exported annually, with China and Singapore receiving approximately 20% of those exports.
Barrot's forthcoming discussions in China will therefore have significant implications for the French brandy industry and its international trade relations.
These tariffs were implemented in October 2024 as part of a broader response to the European Commission's decision to introduce tariffs on Chinese electric vehicles, a measure affecting companies such as BYD, Geely, and SAIC.
Barrot’s upcoming visit to Beijing is intended to address several sensitive trade issues, particularly regarding Cognac and Armagnac.
He made this announcement during the Munich Security Conference, where he indicated that the timing of his trip had been long anticipated.
Earlier in the day, he met with his Chinese counterpart, Wang Yi, signaling a continued dialogue between France and China on trade matters.
The Chinese government has accused France of providing subsidies to its Cognac and Armagnac producers, a claim that the French government has consistently denied.
The tariffs in question are seen as part of a tit-for-tat reaction to the EU’s imposition of anti-subsidy tariffs, which followed a year-long investigation initiated by the European Commission at France's behest.
This investigation culminated in a decision by the Commission to impose tariffs of up to 35.3% on certain Chinese electric vehicles in October 2024, which faced considerable criticism from German officials.
The EU's tariffs were part of efforts to address competitive imbalances in the electric vehicle market.
In light of these developments, former French Prime Minister Michel Barnier had been assigned by President Emmanuel Macron to travel to China in early 2025 to negotiate a resolution, although subsequent political events shifted priorities away from this task after Barnier was ousted following a no-confidence vote in December.
Newly appointed Prime Minister François Bayrou has since redirected focus towards managing the 2025 budget, further delaying negotiations.
According to the national trade body for the industry, around 98% of Cognac production is exported annually, with China and Singapore receiving approximately 20% of those exports.
Barrot's forthcoming discussions in China will therefore have significant implications for the French brandy industry and its international trade relations.
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