EU greenlights €5bn French support scheme for US wine and spirits exports
France has received EU approval for a €5bn re-insurance scheme to protect wine and spirits exports to the US as trade tensions escalate.
The European Commission has approved a €5bn French re-insurance scheme to safeguard wine and spirits exports to the US amid looming tariffs, as reported yesterday (12 May) by Just Drinks. The support measure, effective from 8 May to 8 July, aims to shield exporters from commercial and political risks tied to US bound trade.
The scheme forms part of the Cap Franc export programme and was cleared under EU state aid rules. It offers short term guarantees to companies insuring against payment risks in international transactions.
Pre-emptive move ahead of potential US tariffs
This approval follows the US announcement on 2 April of a new wave of tariffs on EU imports, including a 20% levy on wine and spirits. Although a temporary 90-day pause was issued on 9 April, uncertainty over trade relations continues.
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The Commission described France’s scheme as “necessary, appropriate and proportionate” and noted it had an “incentive effect”, enabling exports that might otherwise not proceed.
European Commission executive vice-president Teresa Ribera confirmed to Just Drinks that the Commission acted swiftly in response to France’s request. She added: “Given the possible EU-wide shortage of export credits to the US during this period, the Commission will apply the same approach to all comparable future cases notified by member states.”
French wine sector braces for impact
CEEV secretary general Ignacio Sánchez-Recarte told Just Drinks that producers “will have to re-evaluate” their US export strategies in light of the tariffs, warning that winemakers would struggle to “reabsorb” the impact of the 20% levy.
The US remains the top export market for French wine and spirits, according to trade body FEVS. In 2024, exports to the US rose in value by 5% to €3.8bn, despite an overall 0.1% volume dip. The increase was led by wine exports, which climbed 8.4%, while spirits held steady.
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