The European Commission has approved a French export credit scheme that will temporarily boost reinsurance for beverage exports to the US, allowing firms to ship inventory before hefty tariffs come into effect.
From May 8 to July 8, French companies exporting wine and spirits to US buyers will be granted access to a pre-existing €5bn reinsurance scheme administered by France’s export credit agency Bpifrance.
France had been required to secure approval from the European Commission as part of EU state aid rules, which seek to prevent unfair competition between export credit agencies (ECAs) and private insurers.
The European Commission approved the measure last week, saying it would help ease the impact of tariffs imposed by US President Donald Trump.
“Due to the shortage of export credit insurance, certain risks are temporarily non-marketable for French exporters of wine and spirits to the US. The Commission has therefore authorised Cap Francexport to include the US in the list of countries covered by its export credit scheme,” the Commission says.
The initiative is “necessary, appropriate and proportionate” to facilitate French beverage exports to the US, it adds.
French wine and spirits exporters consider the US as their largest market, worth an estimated €3.8bn in sales last year, according to industry group FEVS. But from July, they could be hit with additional costs.
Last month, the White House slapped retaliatory tariffs on several markets, including the EU, which was facing a 20% levy on all its US exports before Trump announced a temporary 90-day reprieve.
A Commission spokesperson tells GTR that the “individual budget” allocated by Bpifrance to French wine and spirits exporters to the US has not been calculated, but firms will have access to a €5bn reinsurance pot.
Known as Cap Francexport, Bpifrance’s reinsurance programme works to increase the availability of credit and political risk insurance in the market – encouraging commercial providers such as Coface, Groupama, Atradius and Allianz Trade to boost cover for certain trade flows.
EU state aid rules typically restrict ECAs from competing with private insurers and reinsurers in “marketable risk” countries such as the UK, Japan, Australia or EU member states.
The Commission published a communication in 2021 outlining a “series of conditions” that must be met by state insurers should they wish to provide export credits for marketable risks, amid fears over competitive “distortions”.
Member states must notify the commission if they wish to cover temporary non-marketable risks, the communication says.
ECAs must also show they have contacted the main credit insurers and brokers in their market and “given them an opportunity to provide evidence that cover for the risks concerned is available there”, it adds.
