The French Wine and Liquor sector still hopes to escape the customs tasks of 15% imposed by the United States in European products, and that will enter into force on Thursday, the president of the Federation of Professionals in the sector on Tuesday. “We are still 48 hours from a decision and we have not lost hope that wines and spirits can be exempt,” said Gabriel Picard, president of the French wines and spirits (FEV), in France Inter.
Donald Trump signed on Thursday the decree that establishes the amount of customs duties to 15% for the European Union. These new taxes will enter into force on August 7, to allow customs to organize for collection. The American representative in El Comercio, Jamieson Greer, said during an interview broadcast on Sunday, that these new customs tasks are “almost final” and should not be negotiations immediately.
“25%volume loss”
Gabriel Picard, however, wants to be optimistic. “What we know is that discussions continue, that the European Commission continues to argue fiercely with its American counterparts. And in fact, even if we have few signs today, we have some,” he said.
“Our American friends in the wine and spirits sector are completely aligned with us and fight us against these prices (customs),” he said, emphasizing “that for a dollar wine or liqueurs imported to the United States, there are five dollars in the change in the United States. So, for them, it is five times more important than for us.”
The sector is concerned about the consequences if these customs rights are maintained, and although the euro force compared to the dollar also increases the cost of its export products. “15% increase in customs tasks plus 15% of the variation of the exchange rate, that means a 30% price increase in the US market. It is little or 25% of the loss of volume in this market,” said Gabriel Picard, emphasizing that the US market is its “first client for export.”
Source: BFM TV
