MILAN (Reuters) -EU spirits association spiritsEUROPE on Friday welcomed China's decision to exempt major cognac producers from dumping duties on imports into the country, but called on the government to drop all punitive measures.

China spared major cognac producers LVMH, Pernod Ricard and Remy Cointreau from new duties of up to 35% on EU brandy announced on Friday, provided they sell at a minimum price.

But duties of up to 34.9% for a period of five years starting from Saturday would be levied on producers without minimum price commitments or those that breached promised minimums, the government said in a statement.

spiritsEUROPE Director General Hervé Dumesny said this decision "risks fuelling trade tensions at a time when mutual cooperation is more important than ever".

"We (...) welcome the conclusion of price undertakings with certain companies, as they offer partial relief, and we urge that this option be extended to all companies that have signed up."

(Reporting by Elisa Anzolin in Milan. Writing by Josephine Mason in London. Editing by Mark Potter)