France and China could be close to a deal to resolve the ongoing trade dispute over Cognac exports.

Yesterday (12 June), the Cognac trade body Bureau National Interprofessionnel du Cognac (BNIC) said that it was hoping for "a positive outcome" from talks which had taken place around China's ongoing anti-dumping investigation.

"Agreements could be signed in the coming hours, and we will be able to communicate once the agreement is finalised," the industry group said.

Diplomatic sources told Just Drinks yesterday that talks around the Cognac dispute were ongoing.

A statement from the BNIC today (13 June) confirmed "the industry has collectively decided to enter into negotiations with the Chinese authorities regarding minimum price commitment proposals".

This would allow producers to apply "a minimum import price" for the Chinese market, in exchange for the removal of anti-dumping duties.

Reports from Reuters indicate that negotiators have proposed implementing minimum prices for exports to China between $20 and roughly $300 per litre.

The proposal is allegedly an opening bid which looks to bring the ongoing trade deadlock between the two countries to a close.

The Cognac industry has been facing tariffs on exports to China since October, when the Asian country’s commerce ministry imposed “provisional dumping measures” on imports of EU-origin brandy.

Since October, companies importing products including brandy have had to pay a security deposit to Chinese authorities upon arrival.

China launched its investigation last year after receiving complaints of brandy dumping from the China Liquor Industry Association. The move followed the EU’s launch of an anti-subsidy investigation into Chinese electric vehicles in September 2023.

The probe has been assessing dumping allegations made between 1 October 2022 and 30 September 2023 for EU brandy imported in containers of under 200 litres.

Florent Morillon, President of the BNIC said today: “The ongoing negotiations are progressing positively, and we hope they will soon be concluded."

He added: “Beyond these possible commitments, we reiterate our urgent call for the immediate lifting of the unjustified blockage of the duty-free market, which until recently accounted for 20% of our sales in China and has remained closed since December 1, 2024."

Gabriel Picard, chairman of the Fédération des Exportateurs de Vins & Spiritueux de France (FEVS) was quoted by French daily Sud Ouest as having confirmed that a "minimum price commitment" was "being discussed between France and China"