France-China talks fail to resolve cognac dispute, says minister

France-China talks fail to resolve cognac dispute, says minister

China began an anti-dumping investigation into the brandy in January amid heightened trade tensions between Beijing and Brussels.

French finance minister Eric Lombard said the door remains open for further discussions. (EPA Images pic)
PARIS:
French finance minister Eric Lombard said on Thursday that talks with Chinese vice premier He Lifeng did not yield a solution to a trade dispute with China involving cognac, though he added that the door remained open for further discussions.

China began an anti-dumping investigation into the European Union brandy in January amid heightened trade tensions between Beijing and Brussels. The probe was extended in April, giving EU exporters more time to avoid hefty Chinese penalties.

The National Interprofessional Bureau of Cognac (BNIC), the cognac lobby, said in a statement that the absence of an agreement threatened to have “catastrophic effects” on its industry and region, warning that every day that passed without a resolution was painful.

“We expect full mobilisation of our government to avoid the definitive imposition of these tariffs on July 5,” BNIC said.

Separately, the French agriculture ministry said the two countries had signed two protocols to formalise an agreement to allow unaffected regions to continue poultry exports in the event of a bird flu outbreak in France and to provide access for French poultry and bird genetics to the Chinese market.

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