Strathspey MP Graham Leadbitter welcomes new UK-India trade deal as ‘win for whisky’ whilst warning of ongoing challenges for the industry
A Strathspey MP has welcomed news of a UK-India trade deal as a “win for whisky”, after urging the government to put Scotch Whisky “front and centre” of the trade talks.
The deal will see tariffs on exports of Scotch Whisky to India halved, with additional reductions expected in later years.
SNP MP Graham Leadbitter, whose Moray West, Nairn and Strathspey constituency is home to one-third of Scotland’s whisky distilleries, said the deal was “great news” but warned that, without more support from the UK government, the sector will continue to face enormous challenges.
He said: “I welcome this news and will happily give credit where it’s due to the UK government for securing this deal, but while this is a win for whisky there is much more to do to secure a lasting future for the industry.
“Tariff reductions in the largest export market, by volume, for Scotch Whisky are great news, but it still comes at a time where the sector faces enormous challenges from elsewhere.
“Whisky producers are taking a big hit, not just from Trump tariffs, but from the UK government’s tax raids on the industry, which have seen revenue for both distillers and the Treasury drop.
“If the UK government is serious about giving our world-class industry the backing it deserves, they should build on the progress they’ve made with this deal by cutting their punitive whisky taxes.
“So far Labour have shown themselves to be no friend to the industry — I hope this is the beginning of that changing.”
This is part of a wider deal — hailed by the UK government as a “landmark” achievement — which will see Indian tariffs slashed, locking in reductions on 90 per cent of tariff lines, with 85 per cent of these becoming fully tariff-free within a decade.
Whisky and gin tariffs will be halved from 150 per cent to 75 per cent before reducing to 40 per cnet by year ten of the deal, while automotive tariffs will go from over 100 per cent to 10 per cent under a quota.
Other goods with reduced tariffs, which can open markets and make trade cheaper for businesses and Indian consumers, include cosmetics, aerospace, lamb, medical devices, salmon, electrical machinery, soft drinks, chocolate and biscuits.
According to the UK Government, British shoppers could see cheaper prices and more choice on products, including clothes, footwear, and food products such as frozen prawns, as UK liberalises tariffs.
