France and China make progress on cognac import dispute after investigation delays

In March 2025, France's foreign affairs minister, Jean-Noel Barrot, announced that ongoing trade talks between France and China are progressing regarding the import of cognac, a major export product. The discussions are in response to China's recent provisional tariffs on European brandies, which ranged from 30.6% to 39%. These tariffs were implemented after a preliminary investigation by China's Commerce Ministry suggested that European brands were being dumped into the Chinese market, jeopardizing the viability of local producers. The investigation, however, has faced delays, with Barrot confirming that the anticipated conclusions would be postponed by three months until June 2025. Barrot expressed optimism about the situation, mentioning, "We’ll be really pleased when the problem is behind us. And it’s clear that, step by step, we’re moving toward a resolution." This delay alleviates concerns that permanent duties might suddenly take effect at the end of the investigation. The temporary tariffs are currently forcing importers to deposit the tariffs with Chinese customs, complicating the trade landscape for European suppliers, particularly those from France. Barrot also noted the broader implications of the tariffs, which could impact approximately 70,000 jobs across various sectors, including 270 cognac houses and 4,400 winegrowers. The backdrop of this dispute stems from earlier actions taken by the European Union, which levied duties on electric vehicles manufactured in China. This led to China's retaliation with anti-dumping investigations targeting European imports, including cognac. France's cognac industry, particularly known for well-established brands like Rémy Martin, faces significant risks as the largest consumer market for cognac by value lies within China. Barrot's comments reflect a cautious optimism aimed at finding a resolution to the ongoing trade tension. As France and China look to mend ties, both sides have expressed their commitment to resolving this trade dispute effectively. Barrot emphasized the importance of collaboration and indicated that the next steps will depend on the results yielded by the investigation, hinting at a plan to ensure that such disputes can be resolved on a sound basis moving forward.