Cognac, France - October 11, 2024

French brandy producers say they fear serious consequences after China approved new anti-dumping measures on wine-based spirits.

China began imposing tougher restrictions on imports of brandy from the European Union on Friday, after Brussels voted to apply additional tariffs to China-based electric vehicles makers.

The new measures almost exclusively apply to France as it accounts for 99 percent of China's imports of the wine-based spirit.

People in the town of Cognac in western France, home of the eponymous drink, say there will be an impact.

China argues the dumping of EU brandy in its market 'substantially damages' domestic producers.

France's General Union of Cognac Winemakers called on the government to do more to find a solution.

In a statement, the union said: "The French authorities cannot sacrifice us, abandon us and leave us alone, hostages... France must find common ground so that the application of taxes is suspended or even canceled. We expect concrete and rapid answers."

French brandy shipments to China reached 1.7 billion in U.S. dollars last year.

Brandy producers say that either French businesses or consumers will lose out if the dispute with China cannot be resolved.

Cognac is one of France's top luxury drinks, but more than 90 percent of it is exported.

Shotlist:
Cognac, France - Oct 11, 2024:
1. Various of bottles of cognac;
2. SOUNDBITE (French) Nathalie, resident (no full-name given/starting with shot 1/ending with shot 3):
"I think this tax will definitely have an impact, but what exactly and how, I don't know. But it will undoubtedly have an effect on sales.";
3. Various of bottles of cognac;
4. SOUNDBITE (French) Anne, resident (no full-name given):
"I am an accountant for farmers. Even our side may be impacted by this tax. If they can't sell their products anymore to China or big companies, their sales will reduce. So they will have financial issues.";
5. Various of landmarks, people dining outdoors;
6. Quote from General Union of Cognac Winemakers;
7. Various of vineyard sign by highway;
8. Various of vineyard;
9. SOUNDBITE (English) Jerome Tessendier, CEO, Tessendier and Sons Distillery (ending with shot 10):
"Everyone will do some efforts on their mark-up and they will absorb - I mean a part will be a price increase and a part could be absorbed by ourselves, I mean producers, distilleries and so on.";
10. Various of vineyard.

[Restriction - No access Chinese mainland]