(Bloomberg) -- French Cognac producers accused the government of abandoning them after the European Union’s decision to impose tariffs on electric vehicles from China prompted fears of retaliation against distillers.
BNIC, which represents the Cognac industry, said its request to postpone the vote and negotiate a solution was ignored. Chinese authorities began an anti-dumping investigation into European brandy makers after the EU started looking into electric vehicle subsidies.
France was one of 10 member states that voted in favor of the tariffs, while Germany and four others voted against and 12, including Spain, abstained, according to people familiar with the results.
“The French authorities have abandoned us,” a spokesperson said in a statement. “We do not understand why our sector is being sacrificed in this way.”
Shares in Cognac producers fell on Friday over fears of further tariffs in China, if Beijing decides to retaliate. Pernod Ricard SA was down as much as 1.8%, while Remy Cointreau SA lost as much as 3.1%. Diageo Plc, which has a Cognac and Champagne-producing joint venture with LVMH, was down 1%.
Brandy producers said talks must continue to negotiate a solution that would prevent Cognac from facing a surtax that could effectively exclude them from the Chinese market.
(Updates with French vote on tariffs in fourth paragraph)
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