The price of French wines could increase by 30% in the US market

Monday October 07 2019 by Vitisphere

“All French regions will be affected because they all export to the United States,” warned Antoine Leccia (left), on October 3 alongside Burgundy negociant Louis-Fabrice Latour.“All French regions will be affected because they all export to the United States,” warned Antoine Leccia (left), on October 3 alongside Burgundy negociant Louis-Fabrice Latour. - Photo credit : Bertrand Collard

We are relying on the intelligence of both sides to find a solution to this disagreement”, admitted Nicolas Ozanam, executive director of the Federation of Wine and Spirits Exporters (FEVS), on 3 October, less than 24 hours after the American government announced that it was preparing to slap a 25% tax on still and bottled French wines. What other option is there? To convince the government of the impact that such a measure would have on the industry, the Federation immediately spoke out.

All regions will be affected

The origin of this dispute, which dates back to 2004 and which involves export subsidies granted to Airbus, is nothing to do with us”, argued FEVS chairman Antoine Leccia. He went on to stress that the US is the leading export market for French wines, generating €1 billion in turnover last year, up 15% in volume at the end of June. “With a 25% tax on the value of our products at source, the average price of our wines at retail will increase by 30%. All French regions will be affected, as they all export to the United States”, added Leccia. Exporters are therefore afraid that their sales will fall by the same measure, because Italian wines are not affected, nor are those from the New World.

 

 

 

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