China is introducing fresh rules for importing brandy from the European Union, which will apply for the next 5 years. The Beijing Ministry of Commerce announced the establishment of minimum import prices, although it did not specify circumstantial amounts in the Friday Communication.
The French lobbyist organization of the cognac producers BNIC positively assessed the decision of the Chinese authorities. any producers have already signed the minimum price commitments and almost all the brandy imported from the EU comes from France.
Link to electrical cars
Last week Reuters stated that French cognac producers had reached a preliminary agreement on imports of this beverage from the EU. According to the agencies, the Chinese authorities have made the conclusion of the agreement conditional on advancement in negotiations on imports into the EU of electrical cars produced in China.
This is another point in Beijing's relations with Brussels. Reuters reported last week that the minimum import prices were to scope from 46 yuan (about $6.4) to 613 yuan ($85) per litre, depending on the quality of cognac.
Different rates for different brands
For large known brands import prices would be higher than for tiny producers. Nevertheless, they would inactive be little than the provisional duties imposed by China on brandy imported from the EU in time for the anti-dumping proceeding initiated in 2024.
In a Friday communication, the Ministry of Commerce of China reported that the introduction of fresh duties was closing the proceeding. The Beijing authorities started them erstwhile the EU imposed duties on electrical cars imported from China.
Dramatic decrease in exports
The investigation was scheduled to end on July 5. Following the introduction of provisional duties in October 2024, monthly exports of cognac to China decreased by 70 percent.
(PAP) awm/ akl/ Note: This article was edited with Artificial Intelligence.
