On Monday, the federation of French wine and spirits exporters, or FEVS, stated in a statement that duty-free spirits trade is anticipated to be confirmed by the US-EU trade pact, according to Reuters report.
United States taxes on European Union spirits have been temporarily imposed at 10% since April, as per the report.
“Not everything has been agreed yet as far as wine,” the federation added, cited by Reuters urging France and the European Commission to secure a reduction in customs tariffs.
“Disaster has been avoided, but the coming days will be crucial for the sector,” according to Reuters, citing FEVS statement.
“The agreement … should confirm the restoration of bilateral trade free of duties for spirits, which we are eager to see confirmed in the official documents expected,” said federation President Gabriel Picard, cited by Reuters.
“When it comes to wines, everything is not yet settled: that is why we are encouraging the European Commission and France to fully commit to this final stretch, to obtain the reduction in customs duties on wines, a proposal supported by both American and European stakeholders,” he further stated, quoted by Reuters.
According to Reuters, a 15% hike in wine customs charges would cost the US economy more than $2.5 billion in lost revenue and 17,000 jobs, according to a research by the Wine & Spirits Wholesalers Association.
The U.S. will apply a 15% import levy on the majority of EU goods starting next month as part of the framework agreement between two countries that account for about one-third of global commerce, which was unveiled on Sunday. However, it provides limited protection for vital industries like pharmaceuticals and automobiles.