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Cognac execs and EU delegation attend China anti-dumping hearing
Cognac executives and EU officials rejected allegations of dumping at the first hearing of China’s anti-dumping investigation into imports of European spirits, held this morning in Beijing (18 July).
European associations and “sampled companies” attended today’s hearing in Beijing, according to the Bureau National Interprofessionnel du Cognac (BNIC).
The organisation, which represents France’s Cognac region, released a statement following the hearing, saying it gave European parties the opportunity to “reject the unfounded allegations of dumping, which were neither technically nor legally supported”.
The European Union ambassador was in attendance, the BNIC said, representing the European Commission, accompanied by the French, Spanish and Italian embassies. Also in attendance were a number of “chairmen and managing directors” of relevant companies. The BNIC provided no more information on which companies were represented at the meeting.
It went on to state that those representing the EU and French brandy producers “have firmly reiterated the absence of dumping, injury or threat of injury, as demonstrated by the evidence provided to the investigating authorities throughout the proceedings”.
The BNIC concluded: “European associations and companies remain firmly committed to this procedure in order to demonstrate its lack of legal and technical basis. They expect the Chinese authorities to examine this procedure on the basis of the facts and in full compliance with the rules of law, in accordance with WTO rules on antidumping.”
The hearing was requested by the European parties and granted by the Chinese Ministry of Commerce. It comes after the anti-dumping investigation into imports into China of European spirits made from wine or grape marc was initiated on 5 January this year. The Ministry claimed at the time that European producers were selling into China at below-market rates.
The investigation is looking into brandy and Cognac in containers holding less than 200 litres (52 gallons) imported from October 1, 2022, to September 30, 2023, and if they caused damage to the domestic brandy industry in China between January 1, 2019, and September 30, 2023.
However, Cognac makers have argued that the probe was initiated in response to the European Commission’s decision to slap tariffs of up to 38.1% on electric vehicles made in the People’s Republic.
Brussels accuses China of dumping cheap EVs in Europe to the detriment of local manufacturers.
The dispute has been bubbling for some time and in January China opened a retaliatory anti-dumping investigation into brandy imported from the EU, more than 90% of which is Cognac.
Since then, Cognac producers have been anxiously awaiting a decision on the brandy tariffs, which could come as early as August.
Wang Wentao, the Chinese Minister of Commerce, visited Paris in April to discuss the discuss Chinese EVs in Europe.
The hearing this morning in Beijing is the latest step towards a decision on retaliatory tariffs on brandy, a move which the BNIC hopes will help the two sides reach a resolution. “This hearing is part of the willingness of the associations, as well as European companies, to cooperate fully with the Chinese authorities in the context of this procedure,” the association said in its statement.