French Official Calls U.S. Tariff Action ‘Blackmail’

The French agriculture minister today branded as “blackmail” planned U.S. tariffs of 200% on a range of European Community products and said the EC must negotiate with the United States but not give in.

France will be the hardest hit by the U.S. import duties on $400 million worth of white wines, brandy, gin, assorted varieties of cheese, canned ham, endive, carrots and olives from the 12-nation EC.

“The European Community must negotiate with the United States on the possible prejudice caused by Spain’s entry into the EC, but it must refuse to give in to blackmail,” Agriculture Minister Francois Gillaume said.

French Brandy, Wine

French brandy and white wine would account for more than half the $400 million annual total.

The U.S. action followed negotiations between the United States and the European Community over high tariffs on U.S. feed grain imports to Spain.

The Reagan Administration said Tuesday the measures will go into effect no later than Jan. 30 unless the EC offers adequate compensation for $400 million in lost grain sales to Spain.

“This delay leaves us the possibility of finding an accord before engaging in a trade war which would be disastrous for both sides,” Gillaume said.

A spokesman for Prime Minister Jacques Chirac called the action unacceptable and said it “runs the risk of a confrontation.”

In London, the export director of Beefeater gin said, “We’re going to be taxed rather more highly than Russian vodka.”

“We’ve been trading with the United States for over 40 years,” Don Gregory said. “We’ve always enjoyed excellent relations with the States. So why have they now chosen us? I don’t know.”

Robert Hicks, lawmaker for Britain’s ruling Conservative Party, said the American move “gives the impression that when things are not going America’s way, as opposed to Europe’s, she is prepared to act in this selfish manner.”

‘The Rambo Method’

Michel Noir, the French minister for foreign trade, told Radio-Television Luxembourg he was “both surprised that the Americans choose the Rambo method and anxious to see them entering in the dangerous cycle of a trade war.”