SCOTCH whisky bosses have warned that £100 million of exports could be lost as a result of trade wars that have nothing to do with the industry.
The figure was revealed as it was announced that the Scotch Whisky Association (SWA) has joined forces with its US counterpart the Distilled Spirits Council of the United States (Discus) to press for the UK and US governments to remove hefty export tariffs on their whiskies.
A 25% tariff was imposed on imports of US whisky into the EU in June 2018 in response to US tariffs on European steel and aluminium. Last October, the US imposed a 25% duty on Scotch whisky and liqueurs as part of a long-running dispute over aircraft subsidies.
SWA chief executive Karen Betts said: “Our message is clear – the UK and US governments must return quickly to tariff-free trade. The 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.
READ MORE: SNP fears over impact of post-Brexit US trade deals on whisky industry
“Constructive negotiations must solve trade disputes, tariffs on whiskies will not. Exports each way are markedly down and if these falls are maintained over the year, around £100m is likely to be lost in Scotch whisky exports.”
Betts said many smaller Scotch whisky firms are questioning how they can continue exporting to the US, whether they can develop alternative markets and, if not, how their businesses will cope.
Speaking at a Scotch whisky reception hosted by Scottish Secretary Alister Jack at Dover House in London, she called on the UK and Scottish governments to take mitigating action until the dispute is resolved and to cut excise duty in the forthcoming Budget.
Discus president Chris Swonger said: “Our industries have enjoyed great growth thanks to the zero-for-zero tariff agreement. Scotch whisky exports to the US have grown 270%, and American whiskey exports to the UK have grown 410% since the agreement was reached 25 years ago. We need to get back to zero-tariff trade which benefited distillers on both sides of the Atlantic.”
Betts recently travelled to Washington DC to meet senior figures from the US Department of Trade amid concerns tariffs on single malts could increase.
Prime Minister Boris Johnson has already vowed to remove tariffs on US whiskey once the UK leaves the EU. Jack said: “These tariffs are not in the interests of the UK, EU or US. The UK Government has raised the issue at the highest levels of the US administration, including with the president and we are working hard to support a negotiated settlement.
“Scotch whisky is a global success story and for the good of the communities and businesses that rely on this iconic industry, we will continue to do everything we can to protect it.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here