Fight is on to dump Scotch tariff
The campaign to scrap the United States' swingeing 25 per cent tariff on exports, imposed last summer, is hotting up.
Whisky industry representatives in the UK have now teamed up with their American counterparts – the Scotch Whisky Association and Distilled Spirits Council of the United States demanding the removal of the imposition, amid warnings of that huge losses are looming.
SWA chief executive Karen Betts warned today (January 29) that as much as £100 million of Scotch whisky exports could be lost over the year unless the restrictions were lifted.
The new tariff was imposed on imports of US whiskey into the EU in June 2018, in response to US tariffs on European steel and aluminium.
And in October the US imposed a 25 per cent duty on Scotch whisky and liqueurs as part of a long-running dispute over aircraft subsidies.
"Our message is clear," said Ms Betts. "The UK and US Governments must return quickly to tariff-free trade.
"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.
"Constructive negotiations must solve trade disputes, tariffs on whiskies will not. Exports each way are markedly downk.
"If these falls are maintained over the year around £100 million is likely to be lost in Scotch whisky exports."
Smaller distillers are questioning how they can continue exporting to the US.
Mitigation is also being sought until the dispute is resolved, with a call for excise duty to be cut in the next budget.
For the Americans, Chris Swonger, president, said: "Our industries have enjoyed great growth thanks to the zero-for-zero tariff agreement.
"Scotch Whisky exports to the US have grown 270 per cent and American whiskey exports to the UK have grown 410 per cent 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."
Prime Minister Boris Johnson has already vowed to remove tariffs on US whiskey once the UK leaves the EU.
