The European Commission has expressed its strong opposition to China’s recent decision to impose provisional antidumping measures on brandy imported from the European Union (EU). This development has sparked significant concern among EU officials, who view it as an unfair trade practice.
In an official statement following the announcement from China, the European Commission emphasized the seriousness with which it regards any unjust application of trade defense mechanisms that impact any sector of the EU economy. “The EU takes with utmost seriousness any unfair use of trade defense instruments against any sector of our economy,” the statement read, underscoring a commitment to maintaining fair trade practices.
The Commission acknowledged that an abuse of these trade defense measures for improper reasons constitutes a clear violation of World Trade Organization (WTO) rules. Thus, it has declared its intention to challenge these provisional antidumping measures at the WTO level vigorously. Furthermore, the Commission aims to explore all available avenues to support EU producers adversely affected by China’s unexpected decision.
“We possess the necessary tools to address the harmful effects on EU producers stemming from market disturbances or threats thereof,” the Commission added, reaffirming its dedication to standing firm with EU industries in the face of such challenges. The message is clear: the Commission will not waver in its commitment to creating a level playing field in international trade.
China’s Brandy Measures: A Significant Blow
Earlier, in their declaration, China’s Ministry of Commerce stated that initial investigations revealed the country’s domestic brandy industry was “threatened with substantial damage,” asserting a causal link between dumping practices and this looming threat. While the antidumping measures are temporary, they pose a serious obstacle for renowned brandy manufacturers like Rémy Martin and Hennessy.
France, in particular, likely faces the most considerable impact from these measures, as it supplied nearly 99% of China’s brandy imports last year. This move from China follows the EU’s recent vote to impose impending tariffs on electric vehicles imported from China, potentially reaching as high as 45%. Such actions have escalated tensions between the EU and China, undermining previous attempts by both parties to find a mutually acceptable resolution.
As this situation unfolds, the EU will be closely monitoring developments, ensuring that its producers receive the support they need during this tumultuous time.
Photo credit & article inspired by: Euronews
