China whisky deal brings cheer to troubled industry
The deal will see tariffs halved to five per cent - taking them back to the level they were at until the Chinese government doubled them last January.That move saw China slip from being the fifth largest market by value for whisky to the tenth, reducing shipments by around 30 per cent and costing the whisky industry around £27m last year.Signed during the Prime Minister's visit to Beijing, the deal is believed to be worth £250 million to the UK economy over the next five years. The UK government said the deal will help Scottish distillers "compete more effectively in one of the world's fastest-growing consumer markets."And it was welcomed by the Scotch Whisky Association, with chief executive Mark Kent, saying: “China is a priority growth market for many Scotch whisky producers, which in recent decades has developed into a knowledgeable and premium focused market with a strong appreciation of Scotch. "The proposed tariff reduction from ten per cent to five per cent has the potential to re-energise exports of Scotch to this important market. "We are very grateful to the Prime Minister and officials on both sides for this welcome development and look forward to working with the UK Government on the rapid implementation of the tariff reduction, as part of wider work to improve competitiveness in all Scotch whisky’s global markets.”The announcement on exports to China comes just months after the UK-India trade deal, which agreed to stagger cuts to Indian import tariffs on Scotch from the current 150 per cent to 40 per cent. The move is expected to increase sales to India by up to £1 billion a year.Prime Minister Keir Starmer said: "Our whisky distilleries are the jewel in Scotland's crown. Having already slashed tariffs on whisky exports to India, we're now doing the same with China - proof that our pragmatic, hard-headed international engagement brings benefits at home."And Scottish Secretary Douglas Alexander said: "This is another tremendous result delivered by the UK Government for Scotland's world-renowned whisky industry. From Delhi to Beijing, this government is opening doors for Scottish exporters and putting money in the pockets of working people across Scotland."Just months ago we secured a trade deal with India transforming the prospects for Scotch in the world's largest whisky market. Now we have delivered again in China."The message is clear: with the strength and support of the UK Government behind them, Scotland's finest products can reach every corner of the globe. We will keep fighting for Scottish businesses and Scottish jobs."Scotland's First Minister John Swinney also welcomed the deal, saying: "This is very welcome news. China is a vital market for Scotch whisky exports and one which has grown considerably over the last five years."Both the Scottish and UK government have in the last 12 months attempted to convince President Trump to reduce the 10 per cent tariffs on whisky - and to head off an expected increase in tariffs on single malt to 25 per cent.The industry has also been critical of the UK Treasury's duty on alcohol, which covers around seven per cent of Scotch output that is sold in the UK.
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