That encouragement! The US has agreed to remove tariffs on Scotch Whiskey Aviation News

Scottish single-malt whiskey producers took a breather on Thursday after the US decided on a long line of trade between the US and the European Union over subsidies to Boeing and Airbus after the US agreed to suspend tariffs on one of Scotland’s main exports. .

Former U.S. President Donald Trump set tariffs at 25 percent in October 2019 as part of a trade dispute over aerospace subsidies. While the UK is not a member of the EU, it was the bloc when the tariffs were set.

Earlier this week, the US and EU reached an agreement to end the dispute, allowing the two sides to suspend tariffs for two products, including olive oil and cheese, as well as whiskey, for five years.

According to the Scotch Whiskey Association, tariffs led to a 30 per cent drop in exports to the US, which was equivalent to around £ 600 million ($ 850 million) in the 18 months of March 2021.

“This agreement removes the threat of tariffs being re-imposed on Scotch whiskey next month and distillers are targeting the recovery of exports to our largest and most valuable export market,” said Karen Betts, CEO of the association.

A thaw in relations between the US and the EU was expected after the election of US President Joe Biden, who made it clear that he intended to improve relations. In March, the two sides agreed to suspend Airbus-Boeing-related tariffs in a bid to negotiate a solution.

Following the US-EU aerospace agreement, Liz Truss, Secretary of State for International Trade in the United Kingdom, and Katherine Tai, the US Trade Representative, agreed to suspend revenge tariffs for five years.

“Today’s agreement draws a line under a very damaging issue, and we mean we can focus on taking our trade relationship with the US to the next level by questioning the unfair practices of nations like China and building a free trade force back better [coronavirus] pandemic, ”Truss said.

Tai said the agreement, where both sides also agreed to form a working group on the civil aviation industry and work together on “non-market practices in third countries” to “ensure fair competition and solve common challenges in China and other non-market economies.”

After the UK left the EU’s economic orbit earlier this year, it is free to negotiate agreements with the countries it wants. Earlier this week, the UK government negotiated a broad outline of a free trade agreement with Australia that would eliminate tariffs on a wide range of goods in the coming years.

Ivan Menezes, CEO of the giant drink giant Diageo, said the elimination of tariffs on Scotch whiskey and other recent developments show the benefits that Brexit could bring.

“At the end of this conflict, a new free trade agreement with Australia removes the remaining tariffs on the UK spirit and opens trade talks with India, the world’s largest whiskey market. , whose company’s stable single-malt whiskeys include Talisker and Laphroaig.

The Scottish National Party, which runs the Scottish administration, called for more support from the UK government to help businesses that had suffered.

“Although this announcement is very welcome after the inter-party campaigns, the losses in Scotch whiskey exports have been staggering, and it will take time for the industry to regain its feet,” said MP David Linden.

Under Thursday’s agreement, the UK will suspend tariffs on 25 per cent of US rum, brandy and vodka for five years. US whiskeys, however, will continue to face the 25 per cent tariff set in the UK and the US in connection with the steel and aluminum conflict.

The U.S. Distillery Council welcomed the deal Thursday and hoped to soon find a resolution to raise U.S. whiskey tariffs, which said it has caused a 53 percent drop in exports to the UK.

“We hope that this positive boost will lead to an immediate and definitive abolition of US whiskey in EU and UK whiskeys,” said Chris Swonger, the group’s CEO.

Karen Betts, her counterpart at the Scotch Whiskey Association, said she hopes “these can be resolved quickly as well.”