‘Decisive step’ taken on Brexit transition period

The Wine and Spirit Trade Association (WSTA) has welcomed a “decisive step” by the UK government towards clarifying the future of wine and spirit producers post Brexit, having agreed a transition period with the EU that will last until at least the end of 2020.

Last week the remaining 27 EU leaders formally approved the terms of a transition period after Brexit, which is due to happen on 29 March 2019. It means very little will change in the UK’s relationship with the European Union until the end of 2020 at least.

Commenting on the agreement, Miles Beale, chief executive of the Wine and Spirit Trade Association, said: “The agreement to a draft legal text has demonstrated goodwill on both sides and is a decisive step towards providing the certainty that businesses in the wine and spirit sector crave. The WSTA has long called for a transitional period.

“We also welcome the agreement of the EU27 to negotiating guidelines on the UK’s future relationship with the EU. Since October 2016 the WSTA has argued in favour of continued tariff and quota free access to and from the EU’s single market – which the text rightly aims to deliver.”

TRADE DEALS

The Scotch Whisky Association (SWA) also welcomed the agreement, but noted that trade between the EU and UK should be as “straightforward as possible after the transition period”. Currently, 30% of Scotch exports are destined for the EU.

Karen Betts, SWA chief executive, placed particular emphasis on the need to maintain zero tariffs on materials like glass, machinery and packaging, as well as the development of trade deals.

“Beyond the EU, we would like to see the UK develop ambitious plans for trade deals with markets that are important to our future growth, such as India and China; and secure the continuation of the trade agreements the EU currently has with 3rd countries, such as South Korea.

“For us, there are both advantages and disadvantages to customs union, EEA and EFTA models. Ultimately, what we believe will be important is a constructive and open minded approach on the part of negotiators on both sides, such that UK businesses can continue to trade easily and thrive into the future.”

Likewise, Beale urged politicians not to “rest on their laurels”.

“As the UK is being constantly reminded, nothing is agreed until everything is agreed,” he added. “This means that politicians on both sides of the Channel must, as a matter of urgency, find a mutually acceptable solution for the island of Ireland and agree detailed, practical customs arrangements on which the movement of goods to and from the rest of the EU rely.

It is only in this way that businesses in the wine and spirit industry will have the certainty they need to plan effectively for the future.”