EU-US trade deal does not include wine and spirits, French exporters disappointed

The Star

The EU-US trade deal does not include wine and spirits, said the European Union on Aug 21 but it added that the door is not closed to tariff reductions for the sector and others not included in the deal in future.  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

Transcript

00:00I have maintained regular contact with my US counterparts to follow up on the July

00:29agreement reached in Scotland.

00:33And today I am pleased to announce that we have crossed the finish line.

00:38First, a 15% all-inclusive tariff cap for the European Union.

00:46This is the most favorable trade deal the US has extended to any partner.

00:52A wide range of sectors, including strategic industries such as cars, pharmaceuticals,

00:59semiconductors and lumber, will benefit from this cap.

01:04To get a bit technical, unlike with other trading partners, the 15% cap does not come on top

01:12of existing most favored nation tariffs.

01:16Tariffs on cars and car parts will drop to 15% starting August 1st, helping our automotive

01:26industry remain globally competitive.

01:30The tariffs on the wine, spirits and beer was one of very important offensive interests of

01:35the European Union.

01:36Unfortunately, here we didn't succeed to get this sector and this category among the sectors

01:45which would continue to be on the MFN level.

01:51I just would like to add one very important word and this is yet.

01:56Because our US colleagues, they know that this is our offensive interest.

02:02That's something which is very important for us.

02:04No, we knew that it was difficult, but there was always a little lueur of espoir and

02:15we worked really hard to obtain it.

02:18There were good reasons to be able to obtain it, so it was actually a very big déception.

02:22We knew that it was something difficult and that it was not achieved.

02:26So it's pretty simple, you add 15% of tariff, so the rights of douane,

02:30you add 15% of variation of the change, it's what we saw.

02:34From the beginning of the year, between the euro and the dollar, it means

02:38at about 30% of variation of price.

02:4030% of variation of price, it's about 25% of pertes of volume on the export

02:45of Europe to the United States, mechanically.

02:48The first consequence is very simple, if we take the case of France.

02:52The United States represent 4 milliards of exportations,

02:552 vins and 2 spiritueux, partant from France.

02:57For the Europe, it's 8 milliards in total.

02:59If you lose 25% of these 4 milliards, you lose 1 milliard of affaires.

03:031 milliard of affaires, obviously, it will have consequences

03:07on all the foreign areas and it's 2 milliards on the European level.

03:102 milliard of affaires, the United States represent the European level.

03:14What does the US do?

03:16The US do?

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03:20The US do?

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03:23The US do?

03:24The US do?

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03:26The US do?

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