French President Emmanuel Macron (right) shakes hands with Chinese President Xi Jinping after issuing a joint statement at the Elysee Palace during the Chinese President’s two-day state visit to France on May 6, 2024. A state visit will be held on September 6 to seek to persuade Chinese leaders to change their stance on Russia’s invasion of Ukraine and global trade imbalances. (Photo by Sarah Messonnier/POOL/AFP) (Photo by Sarah Messonnier/POOL/AFP via Getty Images)
Sarah Messonnier | AFP | Getty Images
Shares of several French cognac makers rose on Tuesday after French President Emmanuel Macron suggested trade tensions between China and the European Union could ease, which could affect beverage makers.
As of 10:40 London time on Tuesday, the share prices of Pernod Ricard and Remy Cointreau, France’s two largest cognac producers, were up 3% and 8.1% respectively.
Neither Pernod Ricard nor Rémy Cointreau immediately responded to CNBC’s request for comment.
French President Emmanuel Macron resolved his ongoing trade dispute with Chinese President Xi Jinping on Monday by gifting him a bottle of top French cognac, which reportedly retails for more than $3,200. Xi Jinping is currently visiting Europe and meeting with the continent’s leaders.
“I appreciate the president’s openness to the interim measures for Cognac and his unwillingness not to impose them.” Macron said at a press conference on Monday.
Earlier this year, China launched an anti-dumping investigation into EU cognac producers, which could lead to tariffs on imported spirits. According to sources, China’s Ministry of Commerce stated at the time that it had received an investigation request from the China Liquor Industry Association on behalf of the domestic brandy industry. statement Translated by CNBC via Google Translate.
The outside world generally believes that this investigation is a so-called tit-for-tat move by China. Just a few months ago, the EU began a similar investigation into possible dumping by Chinese electric vehicle manufacturers.
China denies links between the two investigations Reuters reports An unnamed source at the French Finance Ministry was quoted as saying last month.
Ahead of Macron’s meeting with Xi Jinping, the National Cognac Industry Association, which represents the French cognac industry, call Leaders reached agreement on the issue.
The agency said additional tariffs “would cause great harm to regions whose entire economic and agricultural activity is based on the sale of cognac”. More than 95% of European brandy exported to China comes from the French Cognac and Armagnac regions.
About The Author
