Retaliatory taxes on EU wines more than just Chinese whispers

29/05/2024 03:12 - 66 Views

European brandies including France’s Cognac and Armagnac appear to have exited the turbulence of an anti-dumping enquiry but now wines seem to be caught in the crossfire as tensions rise between Brussels and Beijing. Although there has been no official announcement by the Chinese government, publications by official media and affairs representatives point to risks of an escalation of the trade war between the European Union and the People’s Republic of China. In this game of diplomatic bluff, inevitably the stakes have risen on either side: “China is implying there will be retaliation as the trade dispute with Europe worsens”, summed up Bloomberg, claiming that “food, wine and airplanes could be targets, according to State media”, at a time when China is in the midst of a tussle with the United States.

Although the Chinese wine market is currently not in very good shape, any closure to European wines through duties that would act as a disincentive would be a real blow to the French wine industry. China is France’s eight largest export market by volume, with 5.2 million cases in 2023 including Hong Kong (-24% on 2022) and ninth by value (€399 million, -20%).

Source:vitisphere