The European Union (EU) plans to appeal to the WTO Amid Beijing's Complaint”>World Trade Organization
(WTO) regarding China‘s decision to impose anti-dumping measures on brandy imported from the EU. The announcement came after China’s Ministry of Commerce stated that importers would be required to pay a deposit when bringing in brandy from the EU. Olof Gill, the European Commission’s trade spokesperson, expressed determination to defend the EU industry against what they believe is an abuse of trade defense instruments.China’s commerce ministry recently unveiled a plan that sets security deposits ranging from 30.6 percent for Martell products to 39 percent for Hennessey, which will take effect on October 11. This marks a policy reversal for China, as they previously decided not to impose any anti-dumping measures during their probe into European alcohol being dumped into their market.
The scrutiny of European liquors was seen as targeting France, which supports imposing additional duties on Chinese electric vehicles (EVs). Over 95 percent of European brandy exported to China comes from France, with cognac and Armagnac being the primary products.
French President Emmanuel Macron called China’s probe of European alcohol “a pure retaliation” while reaffirming his support for the Commission’s EV tariff proposals. Macron believes that tariffs are necessary to level the playing field with Chinese automakers and preserve Europe’s industrial footprint.
Discussions between EU and Chinese officials are ongoing in an attempt to find alternative measures addressing what Brussels considers “injurious subsidization” by Beijing for Chinese EV production. If no consensus is reached, final duties of up to 36.3 percent on Chinese EVs will become effective by month-end and remain in place for five years.
China has expressed its displeasure against the EU’s tariff plans and continues its anti-subsidy reviews of pork and dairy products from the bloc. In response, China is exploring measures such as raising tariffs on large engine petrol-powered vehicles imported from the EU.
The EU has also filed a complaint with WTO over Beijing’s probe into its cheese, milk, and cream products based on “questionable allegations” and “insufficient evidence.” The EU remains committed to defending its industries’ interests in these trade disputes with China.