EU has chance to lead on trade policy

The EU has an opportunity to lead the world on trade policy, as powerhouse nations like the US and China become embroiled in trade wars, noted Miles Beale, chief executive of the Wine and Spirit Trade Association (WSTA).

During Wine Paris, which has been taking place this week (10-12 February 2025), a trio of industry experts took part in a panel discussion titled ‘Impact of geopolitical tensions on global wine and spirits trade’.

Moderated by Rodolphe Lameyse, CEO of Vinexposium, the parent company of Wine Paris, the speakers were: Miles Beale, chief executive of the WSTA; Nicolas Ozanam, managing director of the Fédération des Exportateurs de Vins & Spiritueux de France (FEVS); and Don Saint Pierre, co-founder of ASC Fine Wine.

Lameyse noted at the start of the talk: “We are facing increasing tension and threats coming from all sides of the world at the moment. We have to adapt to protect the market or find new opportunities.”

In light of the challenges facing the industry – such as tariff threats – the WSTA’s Beale noted an opportunity for the EU to “go quite hard” on free trade agreements around the world.

He said: “The EU has an opportunity to lead the world on trade policy. Europe could be the leader now. It has the opportunity to go quite hard on free trade [deals]. That’s what I would be wanting.

“[Free trade] is not going to be coming from China, it’s not going to be coming from Trump – the EU has an opportunity.”

US tariffs: ‘Not whether, when’

When it comes to the threat of tariffs – notably from the US under president Donald Trump’s leadership – the industry must be “very cautious”, warned FEVS’ Ozanam.

He said: “Of course, we are very cautious about everything that happens. We need to be very cautious that we are not overreacting to all these statements [from president Trump] because at the end of the day, Trump has been in office for two or three weeks, and so far there are no tariffs apart from China. It’s important to be very cautious, but not to overreact.”

Beale also noted: “Certainly in the UK, the largest exporter of spirits in the world, we are particularly exposed to trading headwinds.

“We have Trump 2.0; we know tariffs are coming – it’s not whether [they’re coming], it’s when, and what the reactions will be. We saw that play out six or seven years ago. It’s very likely we are going to get a trade war.”

Unless a new agreement is reached by 31 March, the EU will reintroduce its tariff on American whiskey imports at twice the previous rate (50% from 1 April), following a two-year suspension. The tariffs were originally implemented in response to Trump’s tariffs on steel and aluminium during his first stint as US president.

‘Very painful’

With Cognac and brandy producers from the EU also facing tariffs from China due to an ongoing probe into alleged dumping practices, tensions are high.

China is Cognac’s biggest export market by value, and the category’s second biggest by volume, according to data from the Bureau National Interprofessionnel du Cognac.

Global exports of Cognac fell by 10.6% in value last year.

“We have been in a situation for four or five months where we face very strong decreases in Cognac and brandy imports. It’s very painful for the industry,” noted Ozanam.

“China duty free was closed almost just before Chinese New Year and this had a very strong impact on exports and sales.

“The situation in China is not that good. Hopefully we can find a practical solution between France and China.”

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