HONG KONG (Reuters) -China's Commerce Ministry issued its final ruling on brandy originating in the European Union on Friday, implementing duties of up to 34.9% for a period of five years starting
China spares major cognac makers from EU brandy dumping duties
By Casey Hall
SHANGHAI (Reuters) -China spared major cognac producers Pernod Ricard and Remy Cointreau from new duties of up to 35% on EU brandy announced on Friday, provided they sell at a minimum price.
China's Commerce Ministry issued its final ruling following an investigation into brandy originating in the European Union, most of it cognac from France, first launched last year.
Duties of up to 34.9% for a period of five years starting from July 5, 2025 would be levied on those without minimum price commitments or those that breached promised minimums, the ministry said in a statement. It did not disclose the minimum prices.
French cognac makers have complained they are collateral damage in a broader trade row between Brussels and Beijing over import tariffs imposed on China-made electric vehicles (EVs).
Last October, China imposed temporary anti-dumping measures of up to 39% on imports of brandy from the EU, including on French brands including Hennessy and Remy Martin, after the European Union accused Beijing of giving its auto industry unfair subsidies, and imposed duties on imports of Chinese-made EVs.
Monthly cognac exports to China, the world's most valuable market for the spirit, have fallen by as much as 70% due to the trade dispute, according to data from the Bureau National Interprofessionnel du Cognac (BNIC), an industry body.
Last week Reuters reported that French cognac makers had reached a tentative deal on minimum import prices for the Chinese market, but that China would only finalise the deal if progress was made regarding EU tariffs on Chinese-made EVs.
Pernod Ricard, Remy Cointreau, LVMH's and Campari did not immediately respond to requests for comment on Friday.
The news will likely be welcomed by brandy distillers that have also seen sales slow in the United States, the world's biggest cognac market by volume, as a result of inflation and economic uncertainty.
(Reporting by Casey Hall in Shanghai; Beijing newsroom; Editing by Aidan Lewis, Tom Hogue and Susan Fenton)
