The Chinese government has completed its anti-dumping investigation into European brandy, which had been one of the sources of trade friction with the European Union (EU), and will impose retaliatory tariffs.
On July 4, the Chinese Ministry of Commerce announced, "The Tariff Policy Commission of the State Council has decided, based on the Ministry of Commerce's recommendation, to impose anti-dumping tariffs on imported brandy produced in the EU starting July 5."
Now, companies dealing in "distilled spirits obtained from wine, commonly known as brandy, packaged in containers of 200 liters" will be subject to retaliatory tariffs ranging from 27.7% to 34.9%. The tariff will be applied for a period of five years.
The Ministry of Commerce stated, "In this case, relevant industry associations and companies in the EU voluntarily submitted price undertakings (a commitment to sell at or above a certain price) within the specified time after the preliminary decision. After review, the investigating agency decided to accept price undertakings that comply with Chinese regulations. Exporters who adhere to the terms of the undertaking approved by the investigating agency will not be subject to anti-dumping tariffs."
Previously, China launched an anti-dumping investigation into EU brandy in January last year in response to the EU's trade investigation into subsidies for Chinese electric vehicles. This move was widely interpreted as a retaliatory measure targeting France, the main producer of brandy and a country that had been particularly active in supporting tariffs on Chinese electric vehicles.
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