They insist negotiations continue for a solution that will prevent the spirit from facing a surtax
FRENCH cognac producers accused their government of abandoning them, after the European Union (EU) decided to impose tariffs on electric vehicles (EVs) from China prompted fears of retaliation against distillers.
A request to postpone the vote and negotiate a solution was ignored, said the decision-making body for the cognac industry BNIC.
Chinese authorities began an anti-dumping investigation into European brandy makers after the EU started looking into EV subsidies.
“The French authorities have abandoned us,” a spokesperson said. “We do not understand why our sector is being sacrificed in this way.”
Shares in Cognac producers fell on Friday (Oct 4) over fears of further tariffs in China, if Beijing decides to retaliate.
Pernod Ricard was down as much as 1.8 per cent, while Remy Cointreau lost as much as 3.1 per cent. Diageo, which has a cognac and champagne-producing joint venture with LVMH, was down 1 per cent.
Brandy producers said talks must continue to negotiate a solution that would prevent cognac from facing a surtax that could effectively exclude them from the Chinese market. BLOOMBERG
