US President Donald Trump announced his intention to introduce penalties for French wine. He voiced his threat a few days after returning from a trip to France in connection with the 75th anniversary of the Allied landings in Normandy. In an interview on June 10, Trump explained his decision by saying that wines exported from the United States to France are subject to higher duties than French wines imported into the United States.
According to the American president, “this is not fair,” and Washington “will do something about it.” Earlier, in November 2018, the American president had already expressed dissatisfaction with France’s dishonest behavior in the wine trade. However, the size of duties on goods in the European Union is set not by individual EU member states, but by the European Commission.
EU duties on North American wines are indeed significantly higher than on French wines in the USA, AFP notes. According to the Wine Institute’s lobbyist organization from the California Wine Institute, the EU imposes duties in the amount of 0.11 to 0.29 dollars per bottle, while wines from the European Union in the United States are subject to duties in the amount of 0.053 to 0.127 dollars per bottle.
Imports of European wines in the United States in 2017 reached a total volume of 4.5 billion dollars. The volume of imports in the opposite direction is much lower – about 553 million dollars, while the European Union remains the largest importer of American wines.