Authorities in China have commenced an anti-dumping investigation into allegations against brandy from the European Union – which includes Cognac.
Acting on a complaint filed by the China Liquor Industry Association, the country’s Ministry of Commerce has today confirmed the investigation into brandy imported from European Union member states. With an expected completion date before 5 January next year, the inspection could run for a further six months after this date, “under special circumstances”.
Trade association the Bureau National Interprofessionnel du Cognac acknowledged the development when contacted by Global Drinks Intel today. “This investigation takes place in the context of a trade disagreement between the European Union and China on other industrial sectors, unrelated to our activity,” the BNIC said. “The file on which the Chinese Ministry of Commerce has based the launch of its investigation evaluates the supposed dumping of European brandy at 15.88%.
“This level is significantly lower than that used in other investigations.
“We are confident that our products and commercial practices fully comply with Chinese and international regulations, and that the European Union and China will find a constructive way to resolve any bilateral disputes, as has happened in the past over other matters.”
China is the Cognac industry’s largest export market by value, although predominantly at the VSOP-and-above level. While the investigation has only just started, brand owners such as Rémy Cointreau, Moët Hennessy and Pernod Ricard will be wary of the impact felt by Australia’s wine industry following the conclusion of China’s anti-dumping probe in late 2020. The subsequent imposition of tariffs effectively ruled the country out as an export market, with a review only being announced in October last year.
Neither Pernod Ricard nor Rémy Cointreau would comment further when asked.
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