China spares EU cognac from dumping duties

China spared major cognac producers Pernod Ricard, LVMH and Remy Cointreau from new duties of up to 35% on EU brandy announced on Friday, provided they sell at a minimum price.

- CASEY HALL TASSILO HUMMEL

China’s Commerce Ministry issued its final ruling following an investigation into brandy originating in the European Union, most of it cognac from France, launched last year.

Duties of up to 34.9% for a period of five years starting from July 5, 2025, would be levied on those without minimum price commitments or those that breached promised minimums, the ministry said in a statement. It did not disclose the minimum prices.

In addition, China's commerce ministry will also give back deposits made by brandymakers since October 2024, when provisional duties were imposed. The refund issue, which weighed particularly heavily on smaller producers, was one of the sticking points in months-long negotiations, two industry sources said.