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

France on July 4 praised China's steps to settle a trade dispute over European brandy imports but warned that "major issues" remained unresolved.

- 

PARIS —

The signs of a thaw in the row over the alcohol came as China's Foreign Minister Wang Yi met French President Emmanuel Macron and Foreign Minister Jean-Noel Barrot in Paris.

In recent months, China and the EU have butted heads over Beijing's generous subsidies for its domestic industries.

Beijing launched an investigation in 2024 into EU brandy, months after the bloc undertook a probe into Chinese electric vehicle (EV) subsidies.

In the latest salvo, China will from July 5 require European brandy exporters to raise prices or risk anti-dumping taxes of up to 34.9 per cent.

Beijing said 34 European brandy makers, including several French cognac producers, had signed an accord to avoid tariffs as long as they stick to an agreed minimum price.

France's cognac makers' association BNIC, which includes key producers Hennessy, Remy Cointreau and Martell, confirmed that some companies had agreed to price increases in China to avoid anti-dumping taxes.

Mr Macron and Mr Barrot praised China's steps to resolve the dispute but stressed they would discuss the outstanding differences with Mr Wang.