France seeks resolution to brandy impasse

France’s junior trade minister in talks in Shangahi with French brandy makers hardest hit in latest round of anti-dumping measures

China has urged France to persuade the European Commission to reach a solution that satisfies both the European and Chinese electric vehicle sectors. In contrast, France has made it clear that the EU will not back down on key issues while it seeks to eliminate tariffs on brandy.

Last year, the EU launched an anti-subsidy investigation into imports of Chinese-made battery electric vehicles and voted in October to impose tariffs on them. In retaliation, China has begun its own investigations into European pork and dairy products and, in October, introduced temporary anti-dumping measures on brandy imports from the EU.

At a meeting in Shanghai on Sunday, Chinese Commerce Minister Wang Wentao encouraged French junior trade minister Sophie Primas to actively influence the EU’s stance on Chinese electric vehicles. He noted that the bloc’s investigation poses a significant challenge to collaboration between the Chinese and European automotive industries.

Reuters reports Ms. Primas told Mr. Wang that EU refuses to escalate the situation and continues to trade with China “but will not yield to pressure on the essential points”.

“We will continue to defend fairer competition that benefits everyone,” a statement from her press office showed, adding that Wang was open in their discussions to consider the propositions of French brandy producers.

Primas made a three day visit to China where import duties on brandy were high on the agenda. Paris has accused Beijing of employing politically motivated trade tactics; the tariffs come in the wake of moves by the U.S., followed by the EU, to impose high tariffs on Chinese EVs.

The anti-dumping investigation into the E.U. has hit French producers hard, with France accounting for 99 percent of imports, valuing $US1.7 billion last year.

Beijing says its proposed tariffs on EU brandy, pork and dairy products complied with the World Trade Organization rules, “unlike the EU” which was “rash” in launching its EV probe.

“China will continue to conduct investigations in strict accordance with the law, safeguard the legitimate rights of enterprises of EU member states, including France, and make rulings based on facts and evidence,” the ministry statement cited Wang as saying.

But he said China is willing to work with the European Commission towards a “proper solution” as well, without elaborating.

In August China launched an anti-subsidy probe into EU dairy products following an investigation into pork products in June.