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China Puts Provisional Tariffs On European Brandy After EU OKs Duties On Chinese EVs
BEIJING — Chinese consumers may have to pay extra for Remy Martin and other European brandies after the government issued provisional tariffs ranging from 30.6% to 39% on such liquors on Tuesday, four days after the majority of European Union countries approved charges on Chinese-made electric vehicles.
The tit-for-tat move could give Chinese negotiators leverage in talks with the EU to reduce or eliminate tariffs of up to 35.3% on Chinese EVs, which would go into force at the end of this month.
The brandy taxes are preliminary and require importers to make a deposit with the Chinese customs department for the amount of the levy beginning Friday.
China Puts Provisional Tariffs On European Brandy After EU OKs Duties On Chinese EVs
The announcement came after China’s Commerce Ministry issued a preliminary conclusion in late August that European brandy was being dumped in China, risking “substantial damage” to domestic manufacturers.
China has launched a variety of anti-dumping probes into European brandy, pig, and dairy products, while a year-old EU investigation targeting Chinese EV exports has gone through various levels.
The brandy probe was the first, focusing on French producers of cognac and comparable spirits such as Armagnac. France has supported the inquiry into Chinese-made EVs, while Germany’s automakers are concerned about retaliation in the Chinese market and have opposed it.
China is considering raising duties on imported cars with huge engines, a Commerce Ministry spokeswoman revealed Tuesday in an online report by state broadcaster CCTV.
Provisional charges on brandy differ by brand, comparable to EU duties on Chinese-made electric automobiles. For example, Martell goods are subject to a 30.6% duty, compared to 38.1% for Remy Martin and 39% for Hennessey. Tariffs are being placed on hundreds of companies, including some Spanish manufacturers.
China Puts Provisional Tariffs On European Brandy After EU OKs Duties On Chinese EVs
In a statement, the European Commission accused China of violating global trade rules and promised to assist its producers in weathering the impact of the sanctions.
“The EU takes any unfair use of trade defense instruments against any sector of our economy extremely seriously,” stated the commission, which regulates trade on behalf of the 27 member countries.
“Abuse of trade defense for inappropriate reasons is a clear breach of WTO rules,” it said, warning that it will “robustly challenge” the action at the World Trade Organization.
“In parallel, the commission will now carefully identify and analyze all possibilities for providing adequate help to EU producers facing the detrimental impact of this.
SOURCE | AP
