France and China Rekindle Spirits Trade Talks Amid Tariff Tensions

France and China are in discussions about Beijing's tariffs on European brandy, a response to the EU's tariffs on Chinese EVs. The talks were renewed at the Shanghai Fair, seeking a bilateral solution. Chinese anti-dumping measures on EU brandy have significantly affected French cognac.

France and China have reopened talks to resolve the tariff dispute over European brandy imports. This move comes after the European Union imposed duties on Chinese electric vehicles, according to French spirits lobby groups on Tuesday.

Recent discussions at the Shanghai Fair, described by lobby groups as crucial for bilateral resolution, come in light of China's January anti-dumping investigation into EU brandy. China claims European producers were selling below market rates, but cognac makers argue that the issue extends beyond just spirits.

In October, Beijing introduced temporary anti-dumping measures on EU brandy, following the EU's decision on Chinese EVs. French cognac producers have been the most affected, though the replacement of deposits with a bank guarantee is seen as a positive step, according to the spirits lobby.

(With inputs from agencies.)