INDEPENDENCE and rejoining the EU is the only way to protect Scotland’s exports, the SNP have warned, as India looks set to slap hundreds of millions of pounds on UK exports including Scottish whisky and gin.
The move comes as India seeks leverage in trade negotiations with the UK, as both governments work to seal a new trade deal following the Tories' Brexit agreement.
The SNP have previously urged the UK Government to communicate with the Indian government to reduce the pre-existing 150% tariff on Scottish whisky, with India currently the world’s largest whisky market.
Drew Hendry, the party's shadow international trade spokesperson, has written to the UK International Trade Department to seek clarity on the issue.
Hendry said: “There can be no doubt that the only way to protect Scotland’s exports is through independence and re-joining the European Union and single market.
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“Scotland’s exporters are already contending with the consequences of the pandemic, the UK’s trade war with the EU, and are only just recovering from the 25% tariffs imposed by the Trump administration.
“It is therefore an alarming predicament for Scottish producers if they are to be slapped with yet more costs by a key partner like India.
“That is why I have written to the UK Department for International Trade, asking them what can be done to dissuade the Indian government from inflicting these 15% tariffs.
“I’ve also requested an urgent update on the status of the pre-existing 150% whisky tariffs within the wider UK-India trade agreement.
"It is crucial that the UK government does everything in its power to convince the Indian Government to reverse their decision, or face exposing one of Scotland’s largest exports to further misery.
“Additionally, in the event of increased Indian import tariffs, the UK Government must commit to a financial support package for affected industries - including Scotland’s distilleries."
A Department for International Trade spokesperson said: “We’ve secured great wins for Scottish whisky and gin producers. Our new trade deals with Australia and New Zealand have removed 5% tariffs, and a resolution of the Airbus-Boeing dispute has stopped harmful 25% tariffs against Scotch Whisky.
“Earlier this year the government took steps to protect its vital UK steel sector by extending steel tariffs.
“The UK has a strong trading relationship with India. Although they have not implemented any rebalancing measures, we remain in discussions with our Indian friends and partners on this issue.”
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