Loss of trade deals could cost Scotch £50m a year

The Scotch Whisky Association (SWA) has called for zero tariffs on its exports after Brexit, with chief executive Karen Betts making the issue the focus of the organisation’s annual conference, warning that the potential loss of trade deals could cost the industry over £50m annually in tariffs alone.

Scotch Whisky accounts for 20% of all food and drink exports, with the equivalent of 39 bottles per second shipped overseas last year, totalling an export value of £4.37bn.

As the UK’s departure from the European Union edges ever-closer, Betts called on the UK government to ensure deals with 24 other key international markets to ensure “as good or better” terms for the whisky industry.

“Brexit poses challenges for the industry, and is likely to be disruptive,” said Betts speaking at the conference in Edinburgh today. “We want to continue to be able to export Scotch Whisky to Europe and the rest of the world with a minimum additional cost and complexity, and so our industry can emerge from Brexit in growth.

“That means zero tariffs, a minimum of regulatory divergence and legal protection in the EU. But it also means continued access to the benefits of EU trade deals with third countries, including South Korea and Colombia. We calculate the loss of these trade benefits would cost the industry over £50 million annually in tariffs alone.

“We continue to urge the UK government to swiftly put in place agreements with those third countries so that Scotch can continue to flourish there post-Brexit. And to work on advantageous trade deals with our growth markets, such as India, China and Brazil to ensure the sector continues to prosper.”

The annual gathering in Edinburgh also saw Deputy First Minister John Swinney MSP deliver a speech, who confirmed that the value of Scotch whisky exports from the UK had increased by 9% since 2016.

“Rightly there is a growing confidence within the sector, with investments being made by established distilleries, as well as a high number of new sites being built across the country,” he added. “This is great news for Scotland and as I go around the country, what strikes me is the passion, and commitment of those that work in the industry to produce and promote a high quality product that is made unique by its location, and this is exactly what makes Scotch Whisky so special.

“Whisky is a product shaped by its environment and while steeped in tradition, the industry is not afraid to be dynamic and innovative. I am confident that there is opportunity for further growth and co-operation going forward, and that by working together we can make sure that the right skills are in place to ensure that the sector continues to go from strength to strength.”