UK and US trade bodies call for end to whisky tariffs
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WHISKY industries on both sides of the Atlantic have called for an end to tariffs that are wiping millions off export values every month.
The Scotch Whisky Association (SWA) and the Distilled Spirits Council of the United States (DISCUS) have called on the UK and US governments to urgently negotiate a solution to unrelated trade disputes and to remove all tariffs on distilled spirits.
A 25 per cent tariff was imposed on imports of US whiskey into the EU in June 2018, in response to US tariffs on European steel and aluminium. Then in October last year, the US imposed a 25 per cent tariff on imports of single malt Scotch whisky to the US in the long-running dispute over EU and US subsidies to Airbus and Boeing.
Scotch and American whiskies have traded tariff-free across the Atlantic for more than 25 years. Now, however, both industries find themselves caught up in transatlantic trade disputes that have nothing to do with them but which the SWA says is harming investment, productivity, jobs and growth.
Karen Betts, chief executive of the SWA, said: "Our message is clear: the UK and US governments must return quickly to tariff-free trade.
"The current disputes about steel and aluminium and aircraft manufacture have nothing to do with us – but the tariffs stemming from them are causing needless damage to our industry on both sides of the Atlantic and to the livelihoods we support.
"Exports each way are markedly down, and if these falls are maintained over the year around £100 million is likely to be lost in Scotch whisky exports.
"Many smaller Scotch whisky companies are now asking themselves how they can continue exporting to the US, whether they can build up alternative markets, and if not how their businesses will cope.
"Until a resolution is found, it is critically important that the UK and Scottish governments act to mitigate the impact of tariffs on Scotch whisky producers, particularly SMEs, which are being disproportionately hit. A cut to excise duty in the March Budget would help businesses strengthen their presence in the UK while exports to the US are under such pressure."
Chris Swonger, president and CEO of DISCUS, said: "Our industries have enjoyed great growth, thanks to the zero-for-zero tariff agreement. Scotch whisky exports to the US have grown 270 per cent, and American whiskey exports to the UK have grown 410 per cent since zero-tariff trade was introduced 25 years ago.
"That ended in June 2018 when the EU imposed a 25 per cent tariff on American whiskey in response to US actions on steel and aluminium, which was further compounded by the US introducing a tariff on single malt Scotch whisky, liqueurs and other EU distilled spirits products in connection to an unrelated trade dispute in October 2019.
"We need to get back to zero-tariff trade which benefited distillers on both sides of the Atlantic so our industries can go back to doing what we do best – distilling amazing whiskeys and sharing them with the world."
The GMB union has backed the calls. Keir Greenaway, GMB Scotland organiser, said: "Trade wars have real consequences. Despite our repeated warnings over the past three years, the UK Government has been complacent and has failed to act to defend the Scotch whisky industry.
"This has left the industry vulnerable – and make no mistake US tariffs pose a very real risk to the tens of thousands of Scottish jobs that rely on it."
