Whisky trade bodies unite in call to end ‘punitive’ transatlantic tariffs
Whisky trade associations from both sides of the Atlantic have called on the UK and US governments to end what they described as “punitive” tariffs on spirits.
The chief executives of the Scotch Whisky Association (SWA) and the Distilled Spirits Council of the United States (DISCUS) said the countries should “urgently find a negotiated solution to unrelated trade disputes and to remove all tariffs on distilled spirits”.
Both Scotch and American whiskies being traded across the Atlantic are now subject to tariffs, which the bodies said were “harming investment, productivity, jobs and growth”.
A 25 per cent tariff was imposed on imports of US whisky into the EU in June 2018, after the US introduced tariffs on European steel and aluminium.
In October last year, the US imposed tariffs of 25 per cent on imports of Single Malt Scotch Whisky, as well as other liquiers, in an escalation over the long-running dispute over EU and US subsidies on Airbus and Boeing.
“Our message is clear. The UK and US governments must return quickly to tariff-free trade,” said SWA head Karen Betts at an event in London.
“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,” she added.
“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.”
Chris Swonger, President and chief executive 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%, and American whiskey exports to the UK have grown 410% since zero-tariff trade was introduced 25 years ago.”
“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.”