French winegrowers relieved by US-EU trade truce

The interminable conflict between Airbus and Boeing could end in four months. Brussels and Washington have agreed to lift trade retaliation measures for four months.

Relief for the entire French wine industry: an agreement suspends for four months the customs surcharges that have weighed since October 2019 on exports of French wines and spirits. A 25% tax on these products which is expensive: it represented a burden of 500 million euros for wine growers. And to make matters worse, Donald Trump added cognac and armagnac in January. The new Biden administration is showing much more openness and pragmatism in this area, which has benefited European Union negotiators. These customs retaliatory measures are the result of litigation at the World Trade Organization between Boeing and Airbus since 2004.

First step in ending the conflict with the United States on aeronautics suffered by winegrowers

This agreement is ” a first step in the de-escalation process », Underlines Franck Riester, the Minister for Foreign Trade. The latter explains that he will now work with the Commission and its European partners to obtain, over the next four months, ” an agreement on new rules governing public support for the aeronautics sector, which is in line with our interests and without naivety “. There is great hope on the side of French winegrowers, who are penalized in a trade dispute that does not concern them.

A never-ending trade dispute

The truce brings relief to exporters who, for 18 months, “ suffer these unjust taxes resulting from a conflict which is foreign to them », Explained the FEVS (Federation of Exporters of Wines and Spirits of France). A satisfaction shared by the National Interprofessional Cognac Bureau, which says it expects a lot from these four months of negotiations. The professional organizations demand that a definitive solution be found to a ” interminable conflict over aeronautics », Which will secure companies in the sector on the American market.