European commission approves US$5.6B French re-insurance scheme to safeguard wine and spirits exports to US
The aid measure supports French exporters amid tariff uncertainty by covering commercial and political risks for US-bound shipments.
EU – The European Commission has approved a €5bn (US$5.6bn) French re-insurance scheme aimed at supporting exports of wines and spirits to the United States.
The measure, part of the Cap Francexport regime, was greenlit on 8 May under the European Union’s state aid rules.
This temporary initiative provides short-term guarantees to French companies that insure against commercial and political risks tied to export payments. It is designed to ensure continuity in exports during a window of increased trade tension between the EU and the US.
The support scheme will run from 8 May to 8 July 2025 and is intended to assist businesses exporting goods to the US ahead of potential new tariffs imposed by Washington.
On 2 April, the US announced a series of new import duties on various European goods, including a 20% tariff on products in the agri-food and beverages sectors, affecting wine and spirits.
Although the US introduced a 90-day pause on some of these planned tariffs on 9 April, and the European Union responded by suspending its own countermeasures, the situation remains unresolved.
European Commission President Ursula von der Leyen indicated that the EU is prepared to reinstate its tariffs if negotiations with the US do not lead to a mutually acceptable agreement.
In its assessment, the Commission deemed the French support scheme “necessary, appropriate and proportionate” to maintain export flow during this period of uncertainty.
The Commission also stated that the scheme has an “incentive effect,” as exporters would not otherwise proceed with transactions without this backing.
According to the Fédération des Exportateurs de Vins & Spiritueux de France (FEVS), the US remains the largest market for French wine and spirit exports.
In 2023, export volumes fell slightly by 0.1% to 173.9 million cases, while export values to the US rose 5% to €3.8bn, driven by stock replenishment from American wholesalers.
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