France: Exports Of Wines And Spirits Fell 13.9% In 2020 - Forbes

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The cellar master checks the quality of an aged Armagnac at the Chateau Laubade, in Sorbets, near ... [+] Eauze, in the department of the Gers, south western France, on February 9, 2021. - The American surtax of 25% on Armagnac is difficult to accept for the exporters of this French liquor. Since January 12, 2021, the United States, under Donald Trump's administration, has imposed this new tax which, for example, makes the price of a bottle of Armagnac jump from 100 to 125 dollars, a tax that already affects wines since October 2019, but not Champagne. (Photo by GEORGES GOBET / AFP) (Photo by GEORGES GOBET/AFP via Getty Images)

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The global pandemic and a trade war with the U.S. delivered a one-two punch to France’s wine and spirits industry in 2020. According to the Federation of Wine and Spirits Exporters (FEVS), exports fell 13.9% last year as the industry hopes a new presidential administration will deliver some relief.

The industry reported €12.1 billion in exports in 2020, dropping to levels last seen in 2016. Champagne continued to be one of the hardest-hit sectors as sales dropped 18% by volume.

Under the Trump administration, an ongoing trade dispute involving aeronautics giants Boeing and Airbus escalated as additional tariffs were imposed on unrelated sectors such as wine and spirits. That included an 25% in tariffs added to spirits and wine at the end of December.

Unfortunately for French producers, the new Biden administration has opted to leave the tariffs in place — for now.

European leaders have proposed a 6-month suspension of tariffs related to the aeronautics dispute in an attempt to find some kind of settlement. But the Biden administration is still waiting for the U.S. Congress to confirm his nominee to be the United States Trade Representative.

In the meantime, the U.S. won’t be revising the tariffs, according to USTR spokesperson Adam Hodge who was quoted by The Drinks Business industry news site:

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“We know there is great interest in resolving the Boeing-Airbus dispute on both sides of the Atlantic and USTR looks forward to working with our European allies to find an outcome that levels the playing field once Ambassador Tai is confirmed.”

February 28, 2021 at 02:04AM
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France: Exports Of Wines And Spirits Fell 13.9% In 2020 - Forbes

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