China-U.S. Brand-y Barrier Breakthrough: Pernod Ricard and LVMH Rejoice
China grants major cognac producers like Pernod Ricard and LVMH an exemption from hefty duties on EU brandy, highlighting trade tensions with the EU over tariffs on Chinese-made electric vehicles. Exemptions come with minimum price commitments, offering relief to French producers heavily affected by prior trade disputes.
China has provided a significant relief to major cognac producers including Pernod Ricard and LVMH by exempting them from heavy duties on European Union brandy, a decision marking a pause in the escalating trade tensions between Brussels and Beijing.
The decision follows a prolonged investigation by China's Commerce Ministry, avoiding tariffs as long as the French producers adhere to unspecified minimum price commitments. Cognac makers, whose exports aggregate to $3 billion yearly, have found themselves collateral damage in the broader trade rift.
Despite the reprieve, the trade dispute casts a shadow as French spirits makers grappled with reduced sales amid earlier tariffs. Ongoing diplomatic engagements aim to ease these tensions, with hopes pinned on resolving larger EU-China economic impasses.
(With inputs from agencies.)
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