SWA comments on ongoing US/UK trade discussions

Commenting on ongoing discussions regarding US/UK trade, Chief Executive of the SWA Mark Kent said:

“While we are grateful for the efforts from both sides to secure a positive outcome, no deal has been announced on whisky tariffs.

“The 10% tariff is costing the industry almost £20m a month in lost exports, and over a thousand jobs have already been shed in the last year in Scotland alone. The Scotch Whisky and American whiskey industries have both benefitted from zero-tariff trade over the past three decades and we urge governments to reach a zero-for-zero deal as soon as possible – an outcome which will benefit industries and communities on both sides of the Atlantic.

“In the meantime, it is essential that distillers be supported in our home market by the UK government. In the upcoming Autumn Budget, it is critical that no further harm is done to the industry and that the domestic tax burden on the industry falls, in the wake of mounting international tariff pressures.

“We will be seeking an urgent meeting with ministers to consider next steps to find a deal on tariffs as soon as possible.”

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Statement by Chris Swonger, President and CEO, Distilled Spirits Council of the United States: 

"We had hoped that President Trump’s visit to the UK would lead to an agreement to lift the U.S. tariff on Scotch whisky and other UK spirits. The spirits’ sector is a model of fair and reciprocal trade, and we remain committed to working with the Trump Administration to help get distilled spirits products get back to permanent zero-for-zero tariffs with our key trading partners.  Removing this tariff would provide much-needed support to U.S. hospitality businesses particularly as the important holiday sales season approaches."

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Background:

• According to a Distilled Spirits Council analysis, a 10% tariff on distilled spirits imports from the United Kingdom could lead to retail sales losses of more than $300 million and a loss of 3,300 American jobs hurting the U.S. economy.