America’s 25% tariffs imposed on EU goods, including single malt Scotch whisky, is to stay in place.
The Scotch Whisky Association has now urged the UK and US Governments to hold talks, to try to resolve the dispute.
The tariffs on a variety of produced was imposed on 18 October on EU goods, which also includes spirits from other EU countries.
A 25% tariff was imposed on imports of US whiskey into the EU in June 2018, in response to US tariffs on European steel and aluminium. In October 2019, the US imposed a 25% 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 over 25 years, and they have flourished as a result. However, both Scotch Whisky and American whiskies are now caught in transatlantic trade disputes that have nothing to do with them but which are now harming investment, productivity, jobs and growth.
Chief executive of the Scotch Whisky Association Karen Betts said: ‘We’re deeply disappointed that a 25% tariff remains in place on exports of single malt Scotch whisky and liqueurs to the United States.
‘This tariff has now been in place for four months and is hitting Scotch whisky producers hard, particularly small distilleries. We’ve seen a significant drop in exports already, and based on this we believe we could be facing at least £100 million in lost exports over a year.
‘The EU, US and UK must now redouble their efforts to resolve transatlantic trade disputes quickly, so that Scotch and American whiskies can return to the tariff-free trade from which we have benefitted for more than 20 years. It cannot be right that our industry is continuing to pay the price of trade disputes that have nothing to do with our sector.
‘It’s critical to us that UK-US trade talks now prioritise the urgent, early removal of all tariffs on whiskies. As a first step, we welcome the Prime Minister’s commitment that the UK government will remove EU tariffs on US whiskey as soon as possible now that the UK has left the EU. The UK Government must work to ensure that the US reciprocates.
‘Closer to home, the UK and Scottish governments must now act without delay to mitigate the impact that tariffs are having on Scotch Whisky businesses across Scotland. While it will not compensate for losses in the US, a cut to excise duty on spirits in the March Budget would go some way to helping Scotch Whisky businesses strengthen their presence in the UK to counter-balance losses in the US.’
Last month, representatives of the UK and US whisky industries have called for the end of punitive tariffs that are wiping millions off export values every month.
The chief executives of 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 find a negotiated solution to unrelated trade disputes and to remove all tariffs on distilled spirits.
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