On February 11, the French Federation of Wine and Spirits Exporters (FEVS) announced that French wine exports fell by 13.9% in 2020, with total exports dropping to 2016 levels.
Image courtesy of: OuestFrance
On February 11, the French Federation of Wine and Spirits Exporters (FEVS) believes that the two most important factors are the outbreak of the New Crown epidemic and the imposition of tariffs on French wines by the United States, which happens to be the largest overseas market for France.
Spirits exports also fell sharply, by 19.4 percent in dollar terms, as cafes, clubs, restaurants and hotels around the world closed during the outbreak. FEVS said French wine sales abroad fell 11.3 percent (including an 18 percent drop in the U.S.), mainly due to a 25 percent punitive U.S. tariff imposed in response to the transatlantic airline manufacturing dispute tariffs.
"There is no doubt that the situation in the United States remains the most worrying and therefore the most urgent. The sanctions imposed on our industry over the past 16 months, which were further exacerbated on January 12 (a new series of US taxes on cognacs and still wines), jeopardize the presence of French wines in the world's largest market and the sustainability of our export companies, in addition to affecting the 500,000 players in the wine industry," said Cesar Biron, president of the Federation of Wine and Spirits Exporters ( Cesar Biron, president of the Federation of Wine and Spirits Exporters, said.
FEVS believes that the resolution of the transatlantic conflict must first start at the European level. European Commission President Ursula Von der Leyen needs to address this issue with U.S. President Joe Biden immediately, Biron urged.
In dollar terms, total exports of French wines and spirits fell to 12 billion euros last year. Nevertheless, the sector maintained its second place in the French trade surplus, after the aviation manufacturing industry.