EU Approves French Scheme to Facilitate Wine, Spirit Exports to US
The European Commission on May 7 approved an over $5.6 billion French re-insurance scheme for export credit to the U.S. The scheme will run from May 8 to July 8 and will let wine and spirits exporters ship inventory to the U.S. prior to new tariffs on French goods taking effect when a 90-day pause on country-specific reciprocal rate expires.
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Under the re-insurance regime, French authorities will provide "short-term guarantees to companies that provide insurance against a commercial and/or political risk that is related to payment obligations in an export transaction."
The commission assessed the scheme and found that certain risks are "temporarily non-marketable for French exporters of wine and spirits to the US" due to the "shortage of export credit insurance." The commission also said the French scheme is "necessary, appropriate and proportionate to facilitate the exports of wines and spirits from France to the US during this short period" and that the scheme has an "incentive effect," since the beneficiaries wouldn't conduct the activities without public support.