UK government aims to ‘drive down’ whisky tariffs post-Brexit

David Mundell is due to have meetings with Scotch Whisky Association representatives as well as Diageo at the Caol Ila distillery. Picture: Ian Rutherford
David Mundell is due to have meetings with Scotch Whisky Association representatives as well as Diageo at the Caol Ila distillery. Picture: Ian Rutherford
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The UK government is determined to “drive down” tariffs on the sales of Scotch whisky overseas in the wake of Brexit.

With whisky boosting the UK economy by about £5 billion a year, Scottish Secretary David Mundell said ministers are keen to open up new markets around the world for the iconic drink.

He spoke out ahead of a meeting on the island of Islay.

Mr Mundell will have talks with representatives of the Scotch Whisky Association (SWA) and drinks manufacturers Diageo at the Caol Ila distillery.

Export tariffs on Scotch range from zero to more than 150 per cent, with the UK government now looking at how future trade agreements with other nations could reduce these for products such as whisky, smoked salmon and gin.

The Scottish Secretary said: “Scotch whisky is a world-class product, globally recognised for its quality and heritage, and the industry employs thousands of people in Scotland and around the rest of the UK.

“We are determined to open up new markets around the world for the very best whisky our distillers have to offer - and to drive down any tariffs they face.

“By strengthening ties with key partners, identifying new markets and tackling tariffs, the UK Government is paving the way towards an even brighter future for Scotland’s whisky industry.”

Scotch whisky accounts for about a third of Scottish food and drink exports, with a report by the SWA estimating the industry directly contributes £3.2 billion a year to the UK economy, with a further £1.7 billion of indirect benefits.

Meanwhile, 10,800 people are employed in the sector, while it also supports 29,300 jobs indirectly, according to the research

International Trade Secretary Dr Liam Fox said: “With the recent uplift in trade, we should raise a glass to our exporting success and further help UK businesses make the most of an ever-growing demand for top-selling British products such as Scotch whisky as part of a global Britain.

“Reducing the costs for companies to sell overseas will become one way of further opening up free trade routes and boosting sales, and that’s why I’ve tasked my international economic department to look at how we can support more businesses to build their brands abroad.”

SWA chief executive Karen Betts said: “The Scotch whisky industry is delighted that the Scottish Secretary, David Mundell, is visiting Islay.

“He’ll see the fascinating Islay distilleries, famous for their smokey malts. He’ll see too the importance of the Scotch Whisky industry to Islay’s local communities, and how whisky production there contributes more broadly to the Scottish and British economies.”