An increase in US taxes on French wines rejected across-the-board

Monday June 17 2019 by Vitisphere

Donald Trump’s obsession with taxing European wines in general, and French wines in particular, has not waned.Donald Trump’s obsession with taxing European wines in general, and French wines in particular, has not waned. - Photo credit : DR

Donald Trump’s obsession with taxing European wines in general, and French wines in particular, has not waned. After a tweet caught people’s attention at the end of 2018, following the centenary celebrations of WW1 on November 11, the billionaire grasped the opportunity afforded by an interview with the CNBC channel, as part of the 75th anniversary of the Normandy landings, to hammer his message home again: “You know, France taxes us a lot on wine. And yet, we tax French wine very little. So there are wineries, people from California, who come to me and say, "Sir, we pay a lot of money to market our wines in France, but we allow French wines (which are great, but ours are great too) to come in for nothing. It's not fair, and you know it”. We will do something to solve that”.

International opposition

Donald Trump’s latest declaration has been met with the Gallic shrug across the French wine regions. “It’s nothing new, though it's funny to see that 10 cents is considered to be a lot of tax!” quipped a Champagne negociant. As the threat is not new, trade and industry bodies have already stated their opposition in principle to any restrictions on international trade. Bringing together 25 members from around the world (Bordeaux, California, Champagne, Missouri, Oregon, Washington...), the Wine Origins Alliance recently sent a letter to the office of the American trade representative, Robert Lighthizer, as well as to the European Commissioner for Trade, Cecilia Malmström, to express opposition to any tariff increases on wines, reported The Drinks Business. The Bordeaux and Champagne wine marketing boards confirmed to Vitisphere that the letters were sent in anticipation of retaliatory measures and countermeasures against European subsidies awarded to Airbus (and deemed illegal by the World Trade Organisation).

 

 

 

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