'Whisky war' as US issues new EU tariffs list threat

GMB Scotland raises concerns over new tariff threat to Scotch whisky

The dispute, which could see tariffs imposed on European imports worth up to £3.2bn, centres round a 15-year battle over aircraft subsidies.

The US is the world’s largest export market for Scotch whisky by value, worth £1.04bn in 2018.

In April the US announced proposed tariffs on $11 bn (£8bn) on EU goods.

Today the US Trade Representative’s office announced Scotch whisky, olives, Italian cheese and a range of metals were being added to the list. The date for the tariffs is unknown.

The row at World Trade Organisation (WTO) concerns a disagreement between the US and the EU over subsidies given to plane-manufacturers Airbus from Europe and its US rival Boeing.

Both sides claim the other has benefited from unfair government subsidies. The WTO has ruled in separate cases against both Airbus and Boeing.

A spokesman for the Scotch Whisky Association urged governments and the EU to act swiftly to resolve the crisis.

“Exports of Scotch Whisky to the US have been zero tariff for twenty years, so it is disappointing that Scotch Whisky has been drawn into this dispute.

“The Scotch Whisky industry has consistently opposed the imposition of tariffs, which harms economies on both sides of the Atlantic which depend on trade for their continued prosperity.

“There is a close relationship between the US whiskies and Scotch Whisky, not least due to the use of bourbon casks for maturation generating around £70m for the US economy each year.

“We continue to urge the UK government, the EU and the US government to resolve this situation.”

Meanwhile Gary Smith, secretary of GMB Scotland, warned the UK economy would suffer post Brexit.

“This is a troubling look into the post- Brexit future and towards future trade negotiations with the US.

“If anyone thinks the UK economy isn’t a sitting duck then they are deluded - there will be no special relationships out there.

“It also exposes the fragility of the Scottish economy, where food and drink, and within it whisky and spirits, is the second biggest export sector.

“It reinforces our previous view that for Scotland there is no Brexit deal better than our current deal as members of the European Union.”

A report commissioned by the union and produced by the Fraser of Allander Institute in April, ‘Brexit and the Sectors of the Scottish Economy’, revealed

Scotland exports £14.9 billion worth of goods and services to the EU and around 144,000 jobs are linked to demand from the EU for Scottish exports.