Bordeaux wine trade demands €300m compensation for US tariffs
Phoebe French - Source: www.thedrinksbusiness.com
Bordeaux's wine trade has asked the French government for a €300 million compensation fund to make up for losses incurred as a result of two trade disputes with the US.
According to the Bordeaux Interprofessional Wine Council (CIVB), exports of Bordeaux wines to the US fell by 46% in value and by 24% in volume since October 2019.
Speaking to French media during a press conference, chairman of the CIVB, Bernard Farges, lamented: "The US only puts a 10% tariff on European aircraft, but hits French wine with a 25% tariff. This means that a bottle of Bordeaux sold in the US for US$10 will become $12.50 or even $15 depending on the distributor, leading to a drop in sales.
"This compacts a decline in sales in mainland China, where Australian and Chilean wines have a competitive advantage with lower customs taxes than French wines. The situation in Hong Kong also jeopardises our trade."
He also added that things were "very uncertain" with the UK following Brexit.
Read the full article at: https://www.thedrinksbusiness.com/2020/02/bordeaux-wine-trade-demands-e300m-compensation-for-us-tariffs/