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European Union (EU) Challenges China’s Tax on Brandy Imports at the World Trade Organization (WTO)

The EU Commission announced that a request for consultations has been submitted to the WTO to contest China’s anti-dumping measures against EU brandy.

The statement indicated that China’s temporary measures on brandy are inconsistent with WTO rules, and it noted that China initiated the case based on insufficient evidence, which contradicts WTO legal standards.

The EU’s request for consultations is the first step in initiating the WTO dispute resolution process, and it was mentioned that if an agreement is not reached, the case will be referred to a WTO panel.

Last month, China began imposing temporary anti-dumping duties ranging from 30.6% to 39% on beverages exported from the EU, particularly focusing on brandy imports from France.

This decision to impose taxes on brandy is perceived as retaliation following the EU’s decision to apply additional customs duties of up to 35.3% on electric vehicles manufactured in China.