EU to Challenge China’s Brandy Tariffs at WTO

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.

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