In order to compensate the U.S. retaliatory tariffs attached to French wine, France held an industry meeting on January 7, the French government plans to help the wine companies hit by the epidemic and the U.S. additional tariffs, each up to 200,000 euros in subsidies, in addition, loan repayments extended for one year.
Image courtesy of: Wine Business Watch
The government is expected to soon provide assistance to wine merchants to compensate for the taxes imposed on French wines by the United States, with a new round of taxes set to begin on January 12. A quick solution needs to be found to keep our companies and products competitive in the wine market, said the president of the French Wine Council. We can"t wait any longer.
On January 8th, the President of the French Chamber of Agriculture, Jrme Despey, attended a meeting attended by representatives of the sector and four ministers, including Bruno Le Maire, representative of the Ministry of Economy, Julien Denormandie, representative of the Ministry of Agriculture, Franck Riester, representative of the Ministry of Commerce and Alain Griset, representative of small and medium-sized enterprises. Franck Riester, representative of the Ministry of Commerce, and Alain Griset, representative of small and medium-sized enterprises. Speaking to the press after the meeting, the president of the French Federation of Wine and Spirits Exporters (FEVS), Jerome Despée and Csar Giron, said: "We express our anger at the unfair situation in the wine industry for more than a year and hope that the government will understand our difficulties.
On December 31, the U.S. decided to increase tariffs on all non-sparkling wine, grape juice and cognac from Germany and France by 25% effective January 12 as a response to a trade dispute between the EU and the U.S. over government subsidies for aviation.
To support wine merchants, the French Ministry of Finance plans to provide subsidies of up to 20% of monthly turnover, up to €200,000 per company, to companies affected by the New Crown outbreak. At the same time, the French Ministry of Finance, in cooperation with banks, will postpone the repayment of state-guaranteed loans (PGE) to companies affected by the outbreak for one year.
The French government also hopes that the EU will support it in this matter. It is reported that the four ministers will write to the European Commission asking the EU to cooperate on compensation measures. Wine industry players, on the other hand, insist that measures are urgently needed, saying there is no need to wait for the EU's decision. Many wines exported to the U.S. are currently stranded in French ports, and those shipped to the U.S. after the Christmas holidays have returned to port because U.S. importers do not want to pay high tariffs.