U.S. whisky tariffs a threat to Moray economy, says Richard Lochhead
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Moray’s SNP MSP Richard Lochhead says he is "deeply concerned" about the threat of tariffs on Scotch whisky as part of an ongoing trade war between the European Union and the United States.
Scotland, and whisky in particular, could see itself in the middle of a trade war that started with a clash about aircraft subsidies and has descended into tit-for-tat tariffs.
The US has threatened to put tariffs on the cost of European cheese, meat, pasta and, most importantly for Moray, whisky.
Scotch whisky makes up 12 per cent of the total whisky market in the United States and the USA is also the world's largest export market for Scotch whisky by value – more than £1bn in 2018.
Donald Trump has used commonly used tariffs as foreign policy is set to place them on Scotch whisky for the first time in 20 years. The cost of tariffs is paid by the importing country – in this case the USA – but the increase in price could persuade consumers to buy American produce.
Richard Lochhead is worried about the implications for Moray if this trade war escalates. He said: "I’m deeply concerned about Scotch whisky being caught up in this long-running trade dispute between the United States and the EU.
"Scotch whisky exports to the US were worth over £1bn last year with global sales absolutely vital to the Speyside and Moray economy. Our local distilleries have benefited from duty-free access to the US and EU markets for decades and any proposal to introduce tariffs would seriously damage trade.
"With the huge uncertainty facing the industry over Brexit, this is the last thing the industry needs. We can’t afford for Scotch whisky to be caught in the cross-fire – we need the UK Government to make urgent representations to the EU to ensure that Scotch whisky is not collateral damage to this long-term dispute."
The European Union has tariff free deals which Scotch whisky benefits from but, after Brexit, the United Kingdom will have to re-negotiate these deals – meaning higher tariffs are likely.
The Scotch Whisky Association said: "Exports of Scotch Whisky to the US have been zero tariff for 20 years, so it is disappointing that Scotch Whisky has been drawn into this dispute.
"The industry has consistently opposed the imposition of tariffs, which harms economies on both sides of the Atlantic.
"There is a close relationship between the US whiskies and Scotch Whisky, not least due to the use of bourbon casks for maturation which generates around £70m for the US economy each year.
"We continue to urge the UK government, the EU and the US government to resolve the Airbus-Boeing subsidies dispute without resorting to tariff retaliations for unrelated sectors."
