Delight for Scotch whisky industry over United States' pause on tariffs
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North MP Jamie Stone has raised a glass to celebrate the end of American tariffs on Scotch whisky.
The Liberal Democrat MP for Caithness, Sutherland and Easter Ross praised President Joe Biden and his administration for agreeing to lower the 25 per cent tariffs for four months ahead of wider negotiations.
The tariffs are said to have cost the whisky industry as much as £500 million and lowered US exports by 35 per cent since they were imposed in 2019 as a result of a dispute between the US and European Union over aircraft manufacturers.
The move also applies to other products including cheese, pork and cashmere.
Mr Stone – who enjoys a small dram from time to time – said: "I have campaigned to end these tariffs for so long. Obviously I'm partial to a dram and would be lying if that passion wasn't underpinning my passion for promoting this incredible export.
"But, in all seriousness, the Scotch industry is critical to the Highland economy, offering a range of jobs and high-quality products which show off the best we have to offer.
"Put it this way – blessed are the distilleries, the cheesemakers and President Biden!
"I have no doubt this four-month pause on tariffs will prove to the president that a permanent end to them is absolutely necessary."
The MP's brother, Rory, runs the Tain-based business Highland Fine Cheeses.
Rory Stone called the announcement great news.
"We had already carried out experimental sales in Texas and we could see the huge enthusiasm in the US for all things Scottish," he said. "This now means we have a level playing field with US cheese producers and I give my thanks to all that have made this happen."
Karen Betts, chief executive of the Scotch Whisky Association, said: "This is fabulous news, and our industry is delighted. The tariff on single malt Scotch whisky exports to the US has been doing real damage to Scotch whisky in the 16 months it has been in place with exports to the US falling by 35 per cent, costing companies over half a billion pounds.
“Everyone in our industry – from small companies to large – is breathing a sigh of relief. Suspending these tariffs – stemming from a transatlantic trade dispute that had nothing to do with us – and a return to tariff-free trade with the US means livelihoods and communities across Scotland will be protected.
"It means that companies can now really focus on recovery – on building back the American market as well as on building back global exports hit by the coronavirus pandemic."
Ms Betts added: “I want to pay tribute in particular to the hard work of Liz Truss, the UK international trade secretary, and her team. Her commitment to finding a resolution of this issue, alongside Kwasi Kwarteng, the business secretary, has been very encouraging through what has been a particularly difficult period for our industry. Distillers will certainly be raising a dram to her tonight.
“The UK government and the new US administration will now need to work hard on finding a negotiated settlement to this long-running aerospace dispute. We hope too that both governments will be able to find a rapid, pragmatic solution to the steel and aluminium dispute which still impacts US whiskey exports to the UK.”
Highlands and Islands Conservative MSP Edward Mountain said whisky distilleries in the Highlands would be raising a glass in celebration.
“This will also be welcome news for farmers and will put a spring in their step as they start sowing their barley crops for the distilleries," he said.
“Our Scotch whisky distillers have suffered huge losses as a result of the trade war between the US and EU. Indeed, one of the benefits of being outside of the EU is that the UK can now negotiate trade itself and resolve the issue of punitive tariffs which impacted whisky and cashmere producers.
“I welcome this progress and it highlights how the UK government continues to stand up for Highland businesses and support thousands of jobs too.”
Willie Thomson, chairman of NFU Scotland’s combinable crops committee, said: “As Scotland’s growers gear up for spring planting, the news that the US has decided to suspend its tariff on malt whisky is very welcome.
“By producing some of the best malting barley in the world, Scottish farmers provide the vast majority of the raw materials for malt whisky so any action that helps steady Scotland’s biggest export sector is good news for the rest of the supply chain too. The malting barley we will plant this spring will not appear on shelves in bottles for more than three years so stability, and better still growth, in the whisky sector encourages investment in capacity from the top to the bottom of the supply chain.
“This is very encouraging and it is important that the US and UK governments continue to work together to make the suspension of tariffs permanent.”
Paul Grant, chairman of the Scottish Dairy Growth Board, said a newly launched growth strategy for the sector had identified America as a major opportunity.
“I look forward to our innovative cheesemakers securing a long-term future in this market and building our exports as a result,” he said.
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