French Foreign Minister’s China Visit: A Diplomatic Effort Amid…

France’s Foreign Minister plans a visit to China on March 27 and 28 amid urgent calls for easing trade tensions affecting the cognac industry. Exports to China have fallen dramatically due to trade disputes with both China and the U.S., threatening the survival of the sector. The industry is grappling with potential 200% tariffs proposed by President Trump, highlighting the urgent need for diplomatic resolutions.

The Foreign Minister of France is set to embark on a two-day visit to China on March 27 and 28, as stated by Florent Morillon, head of the cognac lobby group BNIC. This visit comes amidst calls for a resolution to ongoing trade tensions between the European Union and China. The French cognac sector faces challenges due to trade disputes, both with China and the United States.

The cognac industry has reported a dramatic decline, with exports to China plummeting by 60% over the last four months, according to Mr. Morillon, who emphasized the adverse effects on the sector. A source within the French diplomatic community has confirmed Foreign Minister Jean-Noel Barrot’s travel plans, which will include stops in Indonesia and Singapore before arriving in China.

Mr. Morillon highlighted that the U.S. and China are vital markets for French cognac, accounting for 70% of total sales. He warned that without resolution of existing trade disputes, the industry and associated jobs could face severe jeopardy. He indicated that if these issues remain unaddressed, it could lead to the loss of 70% of jobs within the cognac ecosystem.

China’s imposition of temporary anti-dumping measures on European brandy imports has significantly affected cognac sales, aggravated by EU tariffs on Chinese electric vehicles. Representatives from BNIC indicated that these measures could become permanent next month without a trade resolution. President Trump has also threatened a staggering 200% tariff on European wines and spirits, which could entirely eliminate cognac sales in the U.S. market.

Cognac exports to the United States were valued at approximately 1 billion euros ($1.09 billion) last year, underscoring the critical need for diplomatic negotiations to mitigate these impending tariffs and restore market stability.

In summary, France’s cognac industry faces significant challenges due to escalating trade tensions with both China and the United States. The upcoming visit of Foreign Minister Jean-Noel Barrot to China highlights the urgency for resolving these disputes, which have severely impacted cognac exports. Without intervention, the future of the cognac sector, along with numerous jobs, remains uncertain, emphasizing the necessity for diplomatic efforts in international trade relations.

Original Source: www.usnews.com