EU Tariff Threat, China Tariffs, & CBMA Update!

EUROPE:

Requests for updates on the WTO case and potential retaliatory tariffs affecting the wine and spirits industry have been flooding our inbox. The 14-year dispute concerning civil aviation subsidies between the US and the EU is ongoing, and the list of items subject to retaliatory tariffs on both sides include wine and spirits products. WSSA is party to a submission to the USTR opposing the inclusion of alcoholic beverages on the lists and supplying key facts and figures to support the position. The comment period is closed and the public hearing will be held on August 5th, with rebuttals due by August 12th. We cannot predict the outcome, but the potential remains for higher tariffs to be imposed on imports from the EU and exports of USA products to the EU. Should you be interested in a link to the list of products or the joint submission letter to the USTR, pleaselet us know.

CHINA- Trade War Ramps Up:

President Trump has announced a new 10% tariff on all products imported from China effective September 1, 2019. China has indicated that they will take countermeasures and may come back with additional tariffs on USA products. USA wineries have already felt the impact of the current retaliatory tariffs and this could be an area further hurt should countermeasures be taken. We will keep you posted as the results of this current threat play out.

CBMA/Craft Beverage Modernization Act:

We continue to monitor the progress of CBMA claims, “live” entries, and the movement of the CBMA legislation for extension or permanence. WSSA was a sponsor and attendee at the DISCUS/ACSA Public Policy Conference in Washington DC on July 23rd and 24th and spent time on Capitol Hill with various legislators and staffers. There is a high level of bi-partisan support in both the House and the Senate, but whether there will be the appropriate tax extender vehicle to move the legislation to a vote before the end of the year is unknown. Should any of you wish to support passage of this legislation, we would be happy to provide template letters for support as well as information on the Senators and House Representatives who are currently co-sponsors of the bill. Please contact us should you want further information.