US whisky tariffs 'will hit Moray'
Register for free to read more of the latest local news. It's easy and will only take a moment.
THE US decision to impose a 25% tariff on single malt Scotch Whisky has been described as a "huge blow" for Moray.
Both Moray Conservative MP Douglas Ross and SNP MSP Richard Lochhead fear the move will have a major adverse impact on the area's iconic whisky industry.
And union GMB Scotland condemned US President Donald Trump's latest trade-war move.
However, chairman of the Malt Whisky Trail James Johnston OBE was more measured, saying that although the tariffs on exports of single malt whisky were unwelcome, the quality of Scotland’s whisky would protect it.
News emerged overnight that the US planned to impose a 25% tariff on Scotch Whisky and knitwear, including cashmere, from October 18 in response to the EU applying tariffs on US products.
Mr Ross said: "This is a huge blow to industries which are so important to Moray but also the whole of Scotland and the UK.
"When it was first suggested that the EU would impose tariffs on US Bourbon, it was feared that, in retaliation, Scotch Whisky may be punished. That’s why, back in June 2018, I wrote to the EU commissioner to echo representations that had been made urging the EU not to do this.
"Sadly, they failed to listen and this announcement by the US will have a huge impact on our iconic Scotch Whisky industry.
"The US is the first and only billion-pound export market for Scotch Whisky therefore the scale of this 25% tariff is clear for all to see. It will be a huge blow for our industry.
"I’ve immediately begun discussions with Government colleagues and key members of the industry to see what can be done to seek to reverse this decision, because at the end of the day, Scotch Whisky has been disproportionately penalised for a dispute between the US and EU over subsidies given to Airbus.
"The fact that UK-made knitwear will also be included in these tariffs will also have an impact in local businesses here in Moray and shows how much our area is being hit by these decisions."
Mr Lochhead has also written to the UK Government, urging the prime minister to do everything in his power to put pressure on the EU and the US to reach a negotiated agreement and to ensure that these tariffs do not come into force.
Mr Lochhead said: "The US Government’s plans to impose a 25% tariff on imports of Scotch Whisky is a major blow for Speyside and Moray and would seriously impact our local economy. The US is the whisky sector’s biggest market and as the largest producer by volume. Speyside is going to be disproportionately affected – and I have very real concerns around what this will mean for investment and jobs in this key local sector.
"Of course, these tariffs will also hit other local producers and manufacturers hard, with biscuits and cashmere also included in the list of products affected. Given that many of Moray’s iconic brands and products are set to be affected, I would expect that Moray will be one of the areas hit hardest by these charges.
"Trade wars have few winners and any escalation would be a travesty, given that a dispute about subsidies for aircraft manufacturers now threatens to damage Moray’s iconic food and drink sectors as well as cashmere.
"I am writing to the UK Government and also colleagues in the Scottish Government highlighting the potential impact on Moray. The prime minister must make this issue a priority and he needs to get on the phone to his friend in the White House, as well as to any friends he has left in the EU, to make sure these planned tariffs do not come into effect."
Gary Smith, GMB Scotland secretary, said: "This is a troubling glimpse into the post-Brexit future and everyone with the Scottish economy’s best interests at heart should be concerned about our prospects following this development.
"Scotland and the rest of the UK are sitting ducks after October 31. The collective strength we have in the EU trading bloc will be gone and there is simply no such thing as a ‘special relationship’ with the US – Trump will squeeze the UK economy for everything he can get.
"That’s why we have consistently called on the UK Government to bring forward measures to defend whisky and white spirits manufacturing in the face of Brexit uncertainty and to stand up to US demands on the removal of the geographical indicator (GI) protection for single malt production.
"Those calls have fallen on deaf ears. The truth is the best Brexit for Scotland would be no Brexit at all and the increasing possibility of a ‘no deal’ scenario will be ruinous for the Scottish economy and damaging for our vital whisky and white spirits sector."
Mr Johnston said: "This ruling is unwelcome but the quality, consistency and character of the Speyside malt defines the uniqueness of a product which will continue to stand up in economically challenging situations.
"The Scottish food and drink sector has grown three times faster than the rest of the Scottish economy over the past decade and is responsible for over half of all manufacturing jobs along the Malt Whisky Trail.
"It is particularly concerning to see that this judgement will also impose a tariff on cashmere given the fact that Johnston’s of Elgin is another major employer in the region and specialises in fine cashmere clothing. However, the remarkable growth of the sector is down to its success in opening up new overseas markets, underpinned with unquestionably high-end products.
"Keeping it all in context, whilst the US may impose new tariffs, sales to new markets such as China and the Middle East are booming."
Karen Betts, Scotch Whisky Association chief executive, said: "This is a serious situation for the industry."
Last year Scotch Whisky exports to the US were worth £1 billion. Single malts accounted for a large share of that.
