Whisky industry cheers tariff suspension

Scotch whisky distillers are hoping for a stateside boom after costly export tariffs to the US were temporarily suspended for four months.

 

For the first time since October 2019, US tariffs on Scottish exports from whisky to cashmere have been suspended, with hopes now of a long term agreement being struck.

 

As part of a long-running trade dispute, distillers have had to sell at higher prices to the United States - one of its most valuable markets - due to a punitive 25 per cent tariff on specific UK imports.

 

The Scotch Whisky Association has estimated that exports to the US over the last 16 months have fallen 35 per cent - costing producers over half-a-billion pounds.

 

Karen Betts, chief executive of the Scotch Whisky Association, said: 'Everyone in our industry – from small companies to large – is breathing a sigh of relief.  It means that companies can now really focus on recovery and on building back the American market as well as on building back global exports hit by the coronavirus pandemic.'

 

Jamie Halcro Johnston, the Highlands and Islands MSP, welcomed it as an important economic boost for the region.

 

'That injustice has now been reversed and our distilleries, which are so important for jobs and livelihoods across the Highlands and Islands, can now look forward to a major boost in this vital market,' he said.

 

Dr Liz Cameron OBE, director and chief executive of the Scottish Chambers of Commerce, now wants a trade deal to settle the issue permanently.

 

'We lift a dram while wearing our cashmere jumpers to those who have worked to suspend these damaging and unnecessary tariffs on key Scottish exports,' she said.

 

'The USA are our allies and a significant buyer of our goods and the warming of trade relations is an excellent sign.

 

'We look forward to both governments working together to settle this issue permanently as we narrow in on a trade deal.'​

 

The UK and US are working on a trade deal with hopes it could eliminate almost £500m in tariffs on UK exports to the US.