Cheers to Economic Diplomacy: French Cognac Makers Soar as Trade Tensions Cool
Cognac Giants Revive on Hope of Eased Tensions
The cognac industry is abuzz with excitement after President Emmanuel Macron’s astute diplomatic maneuvers raised hopes of easing trade tensions between the European Union (EU) and China. Stocks of renowned cognac producers Pernod Ricard and Remy Cointreau soared on Tuesday, signaling renewed optimism.
- Pernod Ricard’s shares jumped by 2.7%.
- Remy Cointreau surged by a remarkable 7.6%.
A Sophisticated Gift, a Diplomatic Gesture
Macron gifted Chinese President Xi Jinping with a premium bottle of cognac, a symbolic gesture of friendship and goodwill. This carefully chosen present reportedly retails for over ,200.
In a press conference, Macron expressed his gratitude to Xi for his “open attitude” and willingness to avoid implementing provisional measures on cognac.
Trade Tensions Thaw?
Earlier this year, China launched an anti-dumping investigation into EU brandy and cognac makers, fueling concerns over potential tariffs. The move was widely seen as a response to the EU’s own investigation into Chinese electric vehicle makers.
Industry Relief
The prospect of eased tensions has brought relief to the French cognac industry, which represented by the Bureau National Interprofessionnel du Cognac (BNIC). BNIC called for a resolution to the trade dispute, emphasizing the potential damage tariffs would inflict on the Cognac region’s economy.
According to BNIC, over 95% of European brandy exported to China originates from the Cognac and Armagnac regions.
Diplomatic Cheers
The positive signals emanating from Macron’s meeting with Xi have bolstered investor confidence in the cognac industry. If tensions continue to ease, Pernod Ricard and Remy Cointreau could see further share price gains.
Macron’s diplomatic efforts have not only strengthened Franco-Chinese ties but also injected a new wave of optimism into a sector that has been facing challenges.
