France Says "Major Issues" Remain Despite Brandy Price Accord With China

France has welcomed China's efforts to settle a trade dispute over European brandy imports but warned that “major issues” remain unresolved.

Some companies agreed to raise their prices in China to avoid punitive duties. I Photo: Rémy Cointreau Facebook

Signs of a thaw in the dispute emerged as Chinese Foreign Minister Wang Yi met with French President Emmanuel Macron and Foreign Minister Jean-Noël Barrot in Paris, Adrien Simorre, Anna Smolchenko, and Matthew Walsh reported for Agence France-Presse (AFP).

In recent months, tensions between China and the European Union (EU) have escalated over Beijing’s generous subsidies to domestic industries.

In retaliation to the EU’s probe into Chinese electric vehicle subsidies, China launched an investigation into EU brandy imports.

As part of the latest developments, China announced that beginning Saturday, European brandy exporters must raise their prices or face anti-dumping tariffs of up to 34.9%.

Beijing said that 34 European brandy producers — including several French cognac makers — have signed an agreement to avoid tariffs, provided they adhere to a minimum pricing arrangement.

France’s cognac industry association BNIC, which represents leading brands such as Hennessy, Rémy Cointreau, and Martell, confirmed that some companies had agreed to raise their prices in China to avoid punitive duties.

Macron and Barrot acknowledged China's efforts but stressed that unresolved issues would be further discussed with Wang. “This is a positive step toward resolving the dispute, which was threatening our exports,” Macron said in a post on X.