Importance Score: 45 / 100 🔵
China Reportedly Delays Anti-Dumping Probe into EU Brandy
Beijing – China has reportedly postponed the conclusion of its anti-dumping investigation into brandy originating from the European Union. This delay impacts the ongoing inquiry into EU brandy exports, particularly impacting French producers of Cognac and Armagnac.
Probe Conclusion Pushed Back
According to news reports, including those from Bloomberg and Reuters, the conclusion of the investigation has been delayed by three months. France’s Foreign Minister, Jean-Noël Barrot, informed journalists during a recent visit to China about this postponement.
“This action should afford us some respite with the reopening of duty-free sales for Cognac and Armagnac, representing a substantial sales volume for certain brands,” Minister Barrot conveyed in comments shared with Bloomberg.
Background of the Investigation
The anti-dumping investigation was initiated on January 5, 2024, and was initially projected to last for one year. The original timeline indicated a completion date of April 5. In January, China’s Ministry of Commerce had already extended the probe by three months prior to this further delay.
Industry Response
The Bureau National Interprofessionnel du Cognac (BNIC), the national Cognac trade body in France, acknowledged the press reports regarding the delayed conclusion when contacted for comment.
The BNIC stated, “We need to examine in greater detail the feedback we anticipate receiving imminently from the French government.”
Impact on Cognac Sales
Cognac producers, including major players like Pernod Ricard, have faced challenges with sales in duty-free channels for a period of time.
In February, during a discussion with analysts following the release of its first-half financial results, Pernod Ricard’s CFO, Helene de Tissot, referenced the suspension. She described a “worsening situation” in China linked to the “technical suspension of the duty-free regime impacting travel retail in Asia, specifically China duty free and Cognac in China duty free.”