sylwanin @sylwanin: "🇨🇳 China's Decision on EU..."

France

🇨🇳 China's Decision on EU Brandy Tariffs 🥃 On 29 August, China announced that it would not immediately impose tariffs on EU brandy, signaling a potential easing of trade tensions between China and the European Union (EU). This decision comes despite an ongoing anti-dumping investigation that found evidence of unfair pricing practices by European exporters, particularly in the brandy sector. China's Ministry of Commerce launched an anti-dumping investigation on 5 January 2024, targeting EU brandy imports. The investigation found that these imports were being sold in China at prices below fair market value, a practice known as dumping. The Ministry's preliminary findings suggested that such practices could harm China's domestic brandy industry. Specifically, the investigation concluded that there is a causal relationship between the dumping of EU brandy and a significant threat of damage to the Chinese brandy industry. Despite these findings, Beijing decided not to impose provisional anti-dumping measures at this stage. However, the Ministry of Commerce warned that EU brandy imports could still face average tariffs of 34.8% in the future, depending on the investigation's final outcomes. This potential tariff could have a significant impact on the French cognac industry, which accounts for nearly all of China's EU brandy imports. Following the announcement, shares of French spirits companies $RCO.PA (Remy Cointreau SA) & $RI.PA (Pernod-Ricard SA) saw an uptick, reflecting market relief that tariffs were not immediately applied. While the decision provided temporary relief to the market, the European trade association SpiritsEurope expressed disappointment. The organization views the looming threat of tariffs as a significant barrier to market access and believes it could severely impact EU exports of brandy and other spirits to China. Ulrich Adam, SpiritsEurope's director general, criticized the investigation's merits, arguing that the brandy sector had provided sufficient evidence to show that the conditions for launching the investigation were not met. He described the sector as a "collateral victim" of broader trade disputes between the EU and China. China's scrutiny of EU brandy imports is part of a broader pattern of trade tensions between the two regions, particularly in the agricultural sector. In addition to brandy, China has recently launched anti-dumping investigations into EU dairy products and pork, which have been criticized for allegedly benefiting from unfair subsidies under the EU's Common Agricultural Policy (CAP). These investigations are seen as part of China's broader strategy to challenge the EU's agricultural practices. Despite these tensions, experts believe that China's threats of retaliatory tariffs on EU agricultural products are unlikely to escalate into a full-blown trade conflict. However, the European Commission's decision to impose preliminary tariffs on China-made electric vehicles, with slight reductions from initial proposals, reflects the ongoing trade frictions between the two economies. EU farming associations, such as COPA-COGECA, have expressed frustration at being caught in the crossfire of trade disputes that are unrelated to agriculture. They argue that EU farmers and agricultural cooperatives adhere to both EU and World Trade Organization (WTO) rules, yet their exports are unfairly targeted due to broader geopolitical disputes. China's decision provides only a temporary relief, but the underlying tensions between China and the EU remain unresolved. The potential for significant tariffs still looms. As trade tensions continue to simmer, both sides may need to navigate these disputes carefully to avoid further escalation, particularly in the sensitive agricultural sector. The broader implications for EU-China relations could have far-reaching consequences for trade and economic cooperation between the two regions. source: www.euractiv.com/section/agriculture-food/news/china-holds-off-on-eu-brandy-tariffs-but-alleges-dumping-and-damage/ ✅ Like & Follow for more ✅ Copy for china insights Bonne journée ☕️ $DGE.L (Diageo) $BUD (Anheuser-Busch Inbev Sa-ADR) $HEIA.NV (Heineken) $MC.PA (LVMH Moet Hennessy Louis Vuitton SA)