LONDON, June 17 (Reuters) - The drinks industry welcomed a
trade truce between Britain and United States on Thursday that
saw tariffs removed on Scotch whisky and most other spirits,
although they called for further efforts to remove the last
export duties on American whiskey.
Although the trade dispute had focussed on a 17-year tussle
over subsidies for U.S. planemaker Boeing and European
rival Airbus, the drinks industry got caught up in it
when former U.S. President Donald Trump slapped 25% tariffs on
Scotch whisky in 2019.
Those tariffs - which had already been suspended earlier in
the year - now end for at least five years as a result of the
deal struck by Britain and the United States.
"This is very good news for Scotch Whisky. The past two
years have been extremely damaging for our industry," said Karen
Bett, chief executive of the Scotch Whisky Association, adding
that the industry had lost over 600 million pounds ($840
million) in exports as a result of the 25% tariff.
"This deal removes the threat of tariffs being reimposed on
Scotch Whisky next month and enables distillers to focus on
recovering exports to our largest and most valuable export
market."
Noting the truce had not fully resolved the underlying
dispute, she urged the governments to keep on working
constructively.
The deal also helps U.S. exporters of rum, brandy and vodka,
which will see 25% tariffs of their own products also lifted.
But exports of bourbon and other American whiskeys to
Britain and the European Union are still subject to tariffs
imposed in retaliation over a separate dispute about steel and
aluminium.
"This puts American Whiskeys at a serious competitive
disadvantage in the UK and the EU, our two most important export
markets," said Chris Swonger, president and CEO of the Distilled
Spirits Council.
"We hope this positive momentum will also lead to the prompt
and permanent removal of the EU and UK’s tariffs on American
Whiskeys."
($1 = 0.7166 pounds)
(Reporting by Alistair Smout
Editing by Guy Faulconbridge and Frances Kerry)
Diageo (DGE)
