China exempts some French brandy imports from anti-dumping duties

CHANGES HEADLINE, LEDE, DECK, ADDS FOREIGN MINISTRY REMARKS ON CHINA-EU SUMMIT, FRENCH PRESIDENT'S REMARKS

By Mucahithan Avcioglu and Saadet Gokce

ISTANBUL (AA) - China on Friday decided to exempt some French brandy imports to the country from its anti-dumping duties, while also imposing anti-dumping duties on other import-related brandies from the EU for the next five years, beginning Saturday.

In the final ruling of an anti-dumping investigation, the Chinese Commerce Ministry said: "The domestic-related brandy industry is threatened with substantial damage, and there is a causal relationship between dumping and the threat of substantial damage."

The dumping margin was determined to be in the range of 27.7%-34.9%.

The ministry said that brandy enterprises that committed to an acceptable price were accepted, while not specifying the brand names.

Three large French cognac makers – Remy Cointreau SA, Pernod Ricard SA, and LVMH’s Hennessy – are among the producers that agreed on a price commitment with China, according to Bloomberg.

“The minimum price commitment regime offers more tolerable conditions for our companies than the definitive anti-dumping duties announced, even if the market access they allow remains impaired,” Florent Morillon, the head of France's cognac producers’ association BNIC, said in a statement.

The association also said it is "imperative" that the other companies who signed the price agreement also be exempted from the anti-dumping duties, after the three other firms.

French President Emmanuel Macron welcomed the development, calling it a "positive step towards putting an end to this dispute, which threatened French exports."

Paris will continue to raise this issue with Beijing, added Macron.

Beijing's decision to punish some EU imports comes as its foreign minister just held a China-EU high-level strategic dialogue with EU foreign affairs chief Kaja Kallas in Brussels on Wednesday. Wang Yi is on a three-nation tour of Europe, including Belgium, Germany, and France.

The high-level talks between the two sides come ahead of a China-EU leaders' summit set for later this month. Bloomberg claimed that Beijing wants the two-day summit shortened to a single day.

Responding to the claim, China said Friday that the EU and Beijing agreed to "make full preparations for the next China-EU Summit and maintain communication on the specific arrangement."

"Bilateral ties face new opportunities for development," said Foreign Ministry spokeswoman Mao Ning.

EU Commission President Ursula Von der Leyen and EU Council President Antonio Costa plan to meet with President Xi Jinping and Premier Li Qiang in Beijing on July 24. The duo would like to hold a business summit in Hefei, central China the next day, but Beijing wants the summit to be just a single day in Beijing, the report said.