EU cognac tariff case goes to WTO

Brussels has escalated its trade war with Beijing by formally referring the provisional anti-dumping measures imposed by China on imports of EU brandy to the World Trade Organisation. The measure largely affects Cognac, an industry that has been caught in the crossfire after the EU Commission imposed penalty tariffs on electric vehicles and components made in China, which it says are undermining European producers. France’s trade ministry said last month it would work with the European Commission to challenge Beijing’s tariffs. Cognac is an easy target for the Chinese. It is the leading Western spirit category imported to the People’s Republic where locally produced baijiu still takes nearly 95% of the market. If the producers pass on the price rises triggered by the penalty tariffs, the change is unlikely to cause much angst among the Chinese middle classes but it will have maximum impact on a famous French sector. China’s commerce ministry said it had received an EU consultation ...