American customs duties: a “disaster” for French wines and spirits

The establishment of customs duties of 30% on European exports to the United States would be a “disaster” for the French wine and spirits sector, reacted Jérôme Despey, boss of the viticulture branch of the FNSEA Farmers Union on Saturday.

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“It would be a disaster for the whole sector. Therefore, in a situation where wines and spirits already face enormous difficulties,” Jérôme Despey told AFP.

President Donald Trump announced on Saturday the taxation of customs duties of 30% for Mexico. In addition, the European Union, a new bid against the backdrop of negotiations before american customs duties: “disaster” french the deadline of August 1.

“We are waiting to see the list of products concerned. Consequently, but if it was confirmed it would be a particularly difficult situation for the wine and spirits sector,” he said.

In October 2019, the wave of customs duties (+25%) set up by Donald Trump had already caused a 50% drop in French wine exports to the United States, Despey said.

“Reposition yourself on export markets, it is not done in a magic wand. It is stocks of wine that will remain on the domestic market. will come and put the sector in difficulty on the american customs duties: “disaster” french eve of next harvest ”, according to him.

For Gabriel Picard. president of the Federation of French Wine and Spirits (FEVS), 30% which are added to 15% of exchange variations make 45% difference with American production.

“It is not an embargo, but almost,” said Mr. Picard. “And it is first of all a shock and a surprise. The quality of high-level exchanges between the EU and the United States in recent weeks was pretty good. We had almost reached a satisfactory framework of agreement five, six days ago. ”

With the first increase in customs duties of 10% in April, “everyone contributed, the exporter and the importer. But there what is announced is unthinkable. The export flow will become very limited ”.

“We have often seen threats from the United States. the European Commission is asked not to release anything in the negotiation,” said Jérôme Despey.