The European Commission has granted approval for a €5 billion French reinsurance programme designed to protect wine and spirits exporters from potential U.S. tariffs, according to a report published by Just Drinks on 12 May. The temporary support measure, which runs from 8 May to 8 July, is intended to mitigate commercial and political risks associated with transatlantic trade.
The initiative is part of France’s Cap Franc export programme and was authorised under EU state aid regulations. It provides short-term guarantees to businesses insuring against payment defaults in international transactions.
The approval comes in response to the U.S. government’s 2 April announcement of a new tariff package on EU imports, which includes a proposed 20% levy on wine and spirits. Although the U.S. administration issued a 90-day suspension of the tariffs on 9 April, uncertainty continues to cloud trade relations between the two blocs.
Describing the French scheme as “necessary, appropriate and proportionate,” the European Commission stated the measure has a clear “incentive effect,” supporting export activities that may otherwise be cancelled due to elevated risk.
European Commission Executive Vice-President Teresa Ribera told Just Drinks that the Commission acted promptly following France’s notification. She also noted that similar support mechanisms would be considered for other member states facing comparable export risks, citing the possibility of a broader shortfall in export credit availability across the EU.
France’s wine sector, heavily reliant on the U.S. market, is preparing for potential disruption. Ignacio Sánchez-Recarte, Secretary General of the Comité Européen des Entreprises Vins (CEEV), cautioned that producers will be forced to reconsider their U.S. strategies. He warned that a 20% tariff would be difficult for winemakers to absorb.
The U.S. remains France’s largest export destination for wine and spirits. In 2024, the value of French exports to the U.S. rose by 5% to €3.8 billion, despite a marginal 0.1% decline in volume. Wine exports led the increase, registering an 8.4% rise, while spirits exports remained stable, according to data from the Fédération des Exportateurs de Vins et Spiritueux (FEVS).
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