Customs duties: pending clarification, many uncertainties

Details remain to be finalized regarding the tariff agreement, particularly regarding exemptions. While the aeronautics industry is spared, the future for alcohol, on the other hand, is uncertain.
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The United States and Europe have moved closer, but the deal isn't quite finalized. So what are the uncertainties? Customs duties on wine (New window) are still pending. France is hoping for an exemption, but negotiations are complicated. Champagne producer Claude Mandois exports 500,000 bottles a year across the Atlantic. Faced with doubt, orders are stopped in their tracks. "It's a pallet we had prepared about two weeks ago. It was urgent. It was canceled ," he says.
The United States accounts for 27% of French wine and spirits exports. Initially threatened with a 30% tax, the producer is still hoping for an exemption today. Do without the United States? "That's a good question. We're already managing without the Russians. The 30% scared us. Now the uncertainty is even worse." admits Claude Mandois.
Heavily criticized in France, is the agreement unbalanced? On the one hand, the United States will impose a 15% tax on most European products. However, on the other hand, Europe will open its doors wide, with no taxes on the majority of American goods. A lesser evil, according to economists, to avoid a trade war. " For France, this will represent, on average, between 2 and 3% less exports. Obviously, there are sectors that will be more affected than others, but 2 to 3% is something that can be completely absorbed ," explains Lionel Fontagné, director of the Institute for Macroeconomic and International Policies (i-Mip).
Some sectors will be spared, including goods that the United States cannot do without. Certain raw materials, for example, such as chemicals or aircraft parts, will be exempt from customs duties. Near Toulouse (Haute-Garonne), this is good news for a company with 3,000 employees, which supplies Airbus and Boeing. The agreement is over after six months of waiting. " It brings peace of mind, and the sector needs it. Because today we are in a race against time to achieve production ramp-ups. It's a very promising sector." says Thomas Girard, general manager of Figeac Aero.
Negotiations to finalize the agreement are expected to last for many more weeks.
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