The government, after announcing its intention to unlock a further 100 trade deals around the world in June, has taken its first steps this week by resolving issues in Argentina, Angola, Morocco and Tunisia.
Argentina slashed the tariffs placed on Scotch Whisky from 35% down to 20% after negotiations with the British Government, with Angola scrapping plans to place a tariff on the spirit entirely.
Morocco also announced the removal of tariffs accidentally imposed upon British spirits, worth an incredible 48% whilst Tunisia released British Alcohol which had been held at the border by customs, allowing it to now benefit from the British-Tunisian trade deal.
Speaking at the Glenkinchie distillery this week, trade secretary Kemi Badenoch commented: “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.”
After resolving trade issues brought about by the public Airbus/Boeing fallout with America and securing tariff-free exports to Australia and New Zealand, the government is now working towards a further 100 deals worth more than £20bn.
With the Indian trade deal, worth an incredible £1bn to Scotch Whisky alone, set to be finalised by November, there’s renewed confidence in British alcohol exports. Widely expected to become the world’s third-largest economy, the Indian trade deal would see an end to the current 300% import tariffs placed upon Scotch in what is whisky’s largest marketplace.
“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.” – Mark Kent, CEO of SWA
For more information about these trade deals and how they impact the value of Scotch Whisky casks going forward, speak to a Senior Portfolio Manager today!