- Title: Bordeaux wine barons bemoan Trump tariffs
- Date: 4th October 2019
- Summary: SAINT-EMILION, FRANCE (OCTOBER 3, 2019) (REUTERS) INTERIOR OF WINE CELLAR FLOWER OF THE LILY FENCE DESIGN IN CELLAR (SOUNDBITE) (French) HEAD OF CHATEAU BEAU-SEJOUR BECOT, JULIETTE BECOT, SAYING: "It is news which we followed very closely and we were, of course, very wary of the announcement by the International Chamber of Commerce which, following the subsidies which had been granted to Airbus, authorised the United States to raise tariffs on certain products, notably European goods like wine. And for us that may become quite a problem, because the American market is a market where we have been present for a long time. For us that is a big business opportunity in terms of distribution and that may well cause us great problems." WINE BOTTLES IN CELLAR (SOUNDBITE) (French) HEAD OF CHATEAU BEAU-SEJOUR BECOT, JULIETTE BECOT, SAYING: "I think we will have to organise ourselves. We are physically very present in this market, by way of Bordeaux wine dealers, by way of our distributors. I think we'll have to increase the number of operations to be able to convince consumers not to stop buying our premium Bordeaux (wines)." INTERIOR OF WINE CELLAR WITH VISITORS ON GUIDED TOUR (SOUNDBITE) (French) HEAD OF CHATEAU BEAU-SEJOUR BECOT, JULIETTE BECOT, SAYING: "All wines could be affected. But of course, the commercial consequences for profit-making will be more important for producers who might struggle to find other markets and who are dependent on American markets. I think that today Bordeaux is experiencing difficult times. We had periods of frost, we had periods of hail, which affected production enormously and many, many estates in the Bordeaux region. And I think that unfortunately this will be complicated further if the American market doesn't stick with those producers." BECOT WALKING THROUGH WINE CELLAR SAINT-CIBARD, FRANCE (OCTOBER 3, 2019) (REUTERS) INTERIOR OF WINE STORAGE (SOUNDBITE) (French) CO-DIRECTOR OF CHATEAU LE PUY, PASCAL AMOREAU, SAYING: "We'll see over time how Americans react regarding their wine purchases - purchases of French wines, in any case, or European. Yes, a danger, one can't help but wonder if this market share is not going to decrease, now we're going to fight to avoid that, and then maybe they will come back to reason and we'll go back to more reasonable things." SAINT-EMILION, FRANCE (OCTOBER 3, 2019) (REUTERS) EXTERIOR OF CHATEAU BEAU-SEJOUR BECOT WINERY, SAINT EMILION SIGN OF CHATEAU BEAU-SEJOUR BECOT VINEYARDS
- Embargoed: 18th October 2019 10:37
- Keywords: tariffs United States. European Union France Trade Saint-Emilion EU World Trade Organization Trump Boeing wine Airbus Bordeaux U.S. aircraft subsidies WTO dispute
- Location: SAINT-CIBARD AND SAINT-EMILION, FRANCE
- City: SAINT-CIBARD AND SAINT-EMILION, FRANCE
- Country: France
- Topics: Government/Politics,International Trade
- Reuters ID: LVA001AZOLOP3
- Aspect Ratio: 16:9
- Story Text: A U.S. move to impose 25% duties on their wares has brought little cheer to the wine barons of Bordeaux, who fear a possible hit to their business at a time of other problems.
U.S. President Donald Trump announced the tariffs on a range of European foodstuffs as part of Washington's response to EU aircraft subsidies.
The higher tariffs would immediately raise prices by $5-$10 per bottle. Exporters may need to cut prices in order to avoid losing market share, which in turn may threaten producers, the French wine exporters' federation FEVS said.
"Bordeaux is experiencing difficult times," said Juliette Becot, who runs the Chateau Beau-Sejour Becot label in the region.
She said the U.S. tariffs had come at a particularly tricky moment, with the Bordeaux wine region having suffered from adverse weather conditions this year that hit production.
French wine exports to the United States totalled $1 billion in 2018, or about 20% of total exports. Bordeaux wines accounted for more than a fourth of those exports, followed closely by those of Bourgogne and Beaujolais origins.
Champagne is not included in the extra duties list.
Becot and Pascal Amoreau, who helps run the Chateau Le Puy label, hoped that the world-class reputation of French wine would be sufficiently strong to ensure that U.S. consumers would continue to buy the country's products. They both said they hoped wine makers in the region would organise themselves to convince American consumers to continue buying their wines.
(Production Regis Duvignau, Jorrit Donner-Wittkopf)
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