More additional customs duties are to be applied by the US administration on a list of European wines and spirits. At the end of December the USTR published a notice on the Federal Register that announces additional duties on wine spirits imported from France and Germany. Cognac and brandy shall be particularly affected by the new +25% tariff, starting from January 12.
The announcement triggered Europe’s protests, starting with Spirits Europe’s general director, Ulrich Adam, who called for a “rapid removal” of all duties on spirits. “Continuing to drag in this dispute will only create further economic damage. Both sides must find a negotiated solution without delay that ensures that sectors unrelated to the Boeing-Airbus issue stop paying the price,” Adam said.
According to Italy’s Federvini note, US Trade Representative Robert Lighthizer indicated that the outgoing US administration could agree to some sort of a deal with the UK that would alleviate duties on single malt Scotch whiskey.
ITALIAN WINE IS SAFE FROM DUTIES
Italian products, for now, will not be affected by these new measures regarding spirits, and good news comes also for Italian wine producers. In fact Italian wine has been once again saved from US additional tariffs, which would have impacted for a value of little less than 1.5 billion euros. Instead, France, which is Italy’s main competitor on that market, has been further affected. The measures announced should exclude Prosecco, Pinot Grigio, Lambrusco and Chianti, which, unlike French wines, had also escaped the first black list triggered in October 2019.
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This new retaliation was triggered following Europe’s additional duties applied on November 10 on some US food products such as ketchup, cheddar cheese, peanuts, cotton and potatoes. A measure authorized by the WTO after the USA had imposed additional duties of 25% from October 18 on a list of products imported from Italy and the EU for a value of approximately half a billion euros. Among others, Grana Padano PDO, Gorgonzola PDO, Asiago PDO, Fontina PDO, Provolone Valpadana PDO were affected, as well as Italian salami, mortadella, shellfish, citrus fruits, fruit juices and liqueurs (such as bitters and limoncello).