China will not impose anti-dumping measures on EU brandy, for now
Correcting EU dairy export data in paragraph 14
By Casey Hall, Alessandro Parodi and Emma Rumney
SHANGHAI, Aug 29 (Reuters) -Beijing said on Thursday it would not impose provisional tariffs on brandy imported from the European Union despite finding it had been sold in China below market prices, giving both sides room to breathe in tense trade talks.
China's commerce ministry said in a statement it had found that European distillers had been selling brandy in its 1.4 billion-strong consumer market at a margin in the range of 30.6% to 39% and that its domestic industry had been damaged.
"Provisional anti-dumping measures will not be taken in this case for the time being," the statement said, leaving open the possibility Beijing may act at some time in the future.
Previously, the ministry had said the probe was expected to end before Jan. 5, 2025, but that it could be extended "under special circumstances".
China has been canvassing the bloc's 27 member states to reject the European Commission's proposal to adopt additional duties of up to 36.3% on Chinese-made electric vehicles in an October vote, and the decision not to impose tariffs on brandy could be seen as helpful to its case.
"This looks like a negotiation tactic from China," Barclays analyst Laurence Whyatt said, expecting to see a link between EU tariffs on Chinese EVs and Chinese action on EU brandy imports.
"Can they persuade the EU to roll back some of the measures that have been imposed?"
The European Commission said in a statement that it had noted Beijing's announcement and was following the investigation "very closely."
The EU executive also said its detailed assessment showed the merits of the investigation were "questionable."
"The Commission will therefore follow the investigation carefully to ensure WTO rules are being followed ... and will not hesitate to take all necessary actions to defend EU exporters," the statement said.
FRENCH TARGET
France was seen as the target of Beijing's brandy probe due to its support of tariffs on China-made EVs. It also accounted for 99% of China's brandy imports last year.
French exports to China of dairy products that Beijing is investigating totalled 179 million euros ($198 million) last year, about 35% of the EU's total, according to Eurostat.
French cognac association Bureau National Interprofessionnel du Cognac said China's provisional decision did not put its concerns about eventual tariffs to rest.
"We understand that the duties that could be applied to our products at the end of the procedure would average 34.8%. If imposed, such duties would heavily impact Cognac exports to China, a market that alone accounts for 25% of our exports," the association said in a statement.
"An entire sector would thus become the collateral victim of a conflict beyond its control ... We expect France and the European Union to immediately negotiate for the non-application and abandonment of these duties," the statement added.
Shares in French spirit makers jumped about 8% after the announcement, though later pared gains as the market digested the full statement.
At 1058 GMT, Pernod Ricard PERP.PA traded 4.2% higher, Remy Cointreau RCOP.PA was up 5.95% and Italy's Campari was 1.53% higher after its shares were earlier automatically halted in Milan when the stock rose 4.5%.
China's decision came as Pernod Ricard executives presented the company's annual results to investors.
Chief Executive Officer Alexandre Ricard said the company would remain prudent on China given the tariff decision appeared to only apply "for now," but did not elaborate further.
Spokespeople for Pernod and Remy Cointreau RCOP.PA did not immediately provide comments.
Beijing announced its anti-dumping probe on EU brandy in January. Cognac makers have maintained from the outset that the probe is linked to a broader trade row rather than the liquor market.
As well as the brandy probe, Beijing has opened anti-subsidy investigations into dairy and pork products from the EU in recent months.
The dairy probe was launched last week, the day after Brussels published its revised tariff plan for Chinese-made EVs. France is also a major exporter of dairy to China and last year sent there $211 million worth of the targeted products, mostly milk and cream.
($1 = 0.9012 euros)
($1 = 0.9011 euros)
2023 Imports of EU products affected by China's trade investigation https://reut.rs/4fVWces
Spirits-maker shares rebound after China drops tariff probe https://reut.rs/3WXknAg
Spirits-maker shares rebound after China drops tariff probe https://reut.rs/3WXkkEA
Reporting by Casey Hall in Shanghai, Joe Cash in Beijing, Emma Rumney in London, Philip Blenkinsop in Brussels and Alessandro Parodi and Ozan Ergenay in Gdansk; Editing by Christian Schmollinger, Mark Potter and Tomasz Janowski
متعلقہ اثاثے
تازہ ترين خبريں
دستبرداری: XM Group کے ادارے ہماری آن لائن تجارت کی سہولت تک صرف عملدرآمد کی خدمت اور رسائی مہیا کرتے ہیں، کسی شخص کو ویب سائٹ پر یا اس کے ذریعے دستیاب کانٹینٹ کو دیکھنے اور/یا استعمال کرنے کی اجازت دیتا ہے، اس پر تبدیل یا توسیع کا ارادہ نہیں ہے ، اور نہ ہی یہ تبدیل ہوتا ہے یا اس پر وسعت کریں۔ اس طرح کی رسائی اور استعمال ہمیشہ مشروط ہوتا ہے: (i) شرائط و ضوابط؛ (ii) خطرہ انتباہات؛ اور (iii) مکمل دستبرداری۔ لہذا اس طرح کے مواد کو عام معلومات سے زیادہ کے طور پر فراہم کیا جاتا ہے۔ خاص طور پر، براہ کرم آگاہ رہیں کہ ہماری آن لائن تجارت کی سہولت کے مندرجات نہ تو کوئی درخواست ہے، اور نہ ہی فنانشل مارکیٹ میں کوئی لین دین داخل کرنے کی پیش کش ہے۔ کسی بھی فنانشل مارکیٹ میں تجارت میں آپ کے سرمائے کے لئے ایک خاص سطح کا خطرہ ہوتا ہے۔
ہماری آن لائن تجارتی سہولت پر شائع ہونے والے تمام مٹیریل کا مقصد صرف تعلیمی/معلوماتی مقاصد کے لئے ہے، اور اس میں شامل نہیں ہے — اور نہ ہی اسے فنانشل، سرمایہ کاری ٹیکس یا تجارتی مشورے اور سفارشات؛ یا ہماری تجارتی قیمتوں کا ریکارڈ؛ یا کسی بھی فنانشل انسٹرومنٹ میں لین دین کی پیشکش؛ یا اسکے لئے مانگ؛ یا غیر متنازعہ مالی تشہیرات پر مشتمل سمجھا جانا چاہئے۔
کوئی تھرڈ پارٹی کانٹینٹ، نیز XM کے ذریعہ تیار کردہ کانٹینٹ، جیسے: راۓ، خبریں، تحقیق، تجزیہ، قیمتیں اور دیگر معلومات یا اس ویب سائٹ پر مشتمل تھرڈ پارٹی کے سائٹس کے لنکس کو "جیسے ہے" کی بنیاد پر فراہم کیا جاتا ہے، عام مارکیٹ کی تفسیر کے طور پر، اور سرمایہ کاری کے مشورے کو تشکیل نہ دیں۔ اس حد تک کہ کسی بھی کانٹینٹ کو سرمایہ کاری کی تحقیقات کے طور پر سمجھا جاتا ہے، آپ کو نوٹ کرنا اور قبول کرنا ہوگا کہ یہ کانٹینٹ سرمایہ کاری کی تحقیق کی آزادی کو فروغ دینے کے لئے ڈیزائن کردہ قانونی تقاضوں کے مطابق نہیں ہے اور تیار نہیں کیا گیا ہے، اسی طرح، اس پر غور کیا جائے گا بطور متعلقہ قوانین اور ضوابط کے تحت مارکیٹنگ مواصلات۔ براہ کرم یقینی بنائیں کہ آپ غیر آزاد سرمایہ کاری سے متعلق ہماری اطلاع کو پڑھ اور سمجھ چکے ہیں۔ مذکورہ بالا معلومات کے بارے میں تحقیق اور رسک وارننگ ، جس تک رسائی یہاں حاصل کی جا سکتی ہے۔
