The European Commission has approved a €5 billion reinsurance scheme to support French wine and spirits exports to the United States. The temporary measure, which falls under EU State aid rules, will run from 8 May to 8 July 2025. The scheme aims to help exporters ship goods to the U.S. before new American tariffs take effect.
Details of France’s Scheme
France notified the European Commission of its intention to implement this support measure under the Cap Francexport regime. Managed by Bpifrance Assurance Export, Cap Francexport is an existing public reinsurance program designed to support export credit guarantees where private markets are insufficient or unavailable.
The €5 billion scheme will provide short-term guarantees to French wine and spirits companies to insure against commercial and political risks. This targeted intervention is intended to mitigate the adverse impact of the upcoming U.S. tariffs and support continued exports in a narrow window before trade barriers increase.
The Commission’s Assessment
The European Commission assessed the scheme under EU State aid rules, particularly Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU), and relevant guidelines on short-term export credit insurance.
The Commission concluded that:
French exporters currently face a temporary absence of sufficient export credit insurance for the U.S. market.
Including the United States in the Cap Francexport scheme is justified from 8 May to 8 July 2025.
The measure is necessary, appropriate, and proportionate to support the targeted economic activity—exports of French wine and spirits.
The public support has an incentive effect, as the exports in question would likely not occur without the scheme.
Based on these findings, the Commission approved the scheme in line with EU State aid rules.
Background on U.S. Tariff Measures
On 2 April 2025, the United States announced a new round of tariffs under Section 232 of its trade law. These include:
A 25% tariff on steel, aluminium, cars, and car parts.
A 20% tariff on other goods, including machinery, agricultural products, and beverages.
In a temporary reprieve, the U.S. announced on 9 April a 90-day suspension of some tariffs targeting the European Union. The EU followed with a reciprocal suspension to allow space for negotiations, which remain ongoing.
European Commission President Ursula von der Leyen emphasized that while discussions are underway, the EU will not hesitate to reinstate countermeasures if negotiations fail to deliver a fair and balanced outcome.
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