French wine industry continues to be hijacked by aviation issues

Monday January 11 2021 by Vitisphere

 There is now no way still wines can avoid the duties – by shipping in bulk or raising ABV to over 14% – and some sparkling wines and spirits are also targeted. There is now no way still wines can avoid the duties – by shipping in bulk or raising ABV to over 14% – and some sparkling wines and spirits are also targeted. - Photo credit : White House (Air Force One)

The French wine and spirits industry is becoming increasingly vociferous in its condemnation of additional duties imposed by the US and seems to have driven its message home during a meeting with the French government on January 7. No fewer than four ministers attended the meeting with industry representatives and announced the launch of interdepartmental working groups. The aim is to hold another meeting very shortly between both sides to finalise much anticipated measures.

Discussions are ongoing and decisions will be made during the week [ending 15 January]. The important point is the change in tone [by the authorities]. It shows the situation is being taken seriously - we're not talking about another meeting in a month's time”, stressed Languedoc winegrower and chairman of the FranceAgriMer wine board, Jérôme Despey. He is adamant that quick solutions are needed if the industry is to maintain its competitiveness: “It is no longer an option for companies to have wines blocked in ports or not be able to ship them in the first place. Outlets need to be found for wines no longer sold [in the American market]. We are looking at all possible solutions, ranging from compensation funds to access to the solidarity fund, state-guaranteed loans, tax and social measures... We need rapid responses, the situation is no longer tenable”.

As part of the conflict involving aviation subsidies between the European Union and the United States (for Airbus and Boeing), as of January 12 the US will slap new additional duties of 25 % on all still wines (irrespective of their ABV or their packaging format), as well as sparkling wines (with a pressure of under 3 bars and carbon dioxide of over 3.92 g/l), and some French brandies in containers of under 4 litres with a customs clearance value of more than 22.8 dollars per 70 cl, 40% ABV bottle.

This is another turn of the screw for French still wines which have already been subject to additional duties in the American market since 19 October 2019. The French wine industry is asking that diplomatic tension between the European Commission and the American administration be eased and that negotiations continue. “The finger is on the trigger. We must move the gun away from our heads in order to restore a more peaceful situation”, summed up Anthony Brun, chairman of the AOC Cognac producers’ organisation (UGVC).

LEAVE A COMMENT

Copy the code :
Processing
© Vitisphere 2021 - Tout droit réservé