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Lifestyle
Neil Pooran & Peter A Walker

Alcohol markets ‘worth £100 million’ unlocked after trade talks

The UK Government has claimed to have unlocked export markets worth £100m for the alcohol industry, after negotiating an end to trade barriers with several African and South American nations.

However the Scotch Whisky Association (SWA) responded that ongoing trade talks with India are a “once in a generation” opportunity to unlock business on an even larger scale.

The Department for International Trade stated that it has intervened to end a number of barriers recently.

In Argentina, whisky tariffs were reduced from 35% to 20% following negotiations.

The department said that Morocco removed 48% tariffs, which were mistakenly imposed on UK spirits, and Angola cancelled a planned tax on whisky.

It also said UK-produced alcohol was freed after being stuck in customs in Tunisia.

On Thursday, Trade Secretary Kemi Badenoch visited the Glenkinchie Distillery in East Lothian, which is owned by Diageo.

She said: “Every week we remove a trade barrier somewhere around the world, from whisky in Argentina to gin in Angola, we’re slashing red tape and opening access to new markets and new customers.

“With these trade obstacles gone and more to follow, my message to UK businesses is clear – make the most of the huge global appetite for your fantastic products and sell to the world.

“As we line up deals with huge markets around the globe, including India and CPTPP [Trans-Pacific Partnership], I can’t wait to celebrate the even greater wins which lie ahead.”

According to industry figures for 2021, Scotch whisky exports grew by 19% to reach a total value of £4.51bn.

Mark Kent, chief executive of SWA, said: “Securing a deal with India to reduce the 150% tariff on Scotch whisky is the industry’s top international trade priority.

“We want to see a deal agreed, but not any deal.

“To deliver for the industry, any agreement must open up the market to more Scotch whisky producers, which will in turn generate hundreds of new jobs across the UK, hundreds of millions of pounds of additional exports, and boost investment and revenue in India.

“The ongoing negotiations are a once in a generation chance to give more Scottish distillers the opportunity to do business in India. That is the scale of the prize on offer.”

Ewan Andrew, president of global supply chain at Diageo, said: “It was a pleasure to welcome the Secretary of State to Glenkinchie to see how we are investing in the future growth of Scotch whisky, with all the powerful economic benefits that brings to Scotland and the United Kingdom.”

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