Sir Keir Starmer has secured a significant win for Scotch whisky, with China agreeing to cut the tariff from 10% to 5%.
The deal, signed during the Prime Minister’s visit to Beijing, will be worth an estimated £250 million to the UK economy over the next 5 years.
China is currently Scotch whisky’s 10th largest market by value, though sales have been volatile in recent times.
Dave Lewis, chief executive of Johnnie Walker maker Diageo is said to be considering the sale of its Chinese assets as it seeks to trim its portfolio amid falling sales in the world’s second-largest economy.
However, the Artisanal Spirits Company, owner of the Scotch Malt Whisky Society, said last week that it had seen an improved performance in China in the second half.
The latest agreement follows the landmark UK-India trade deal, which slashed Indian import tariffs on Scotch and is set to increase sales to India by up to £1 billion a year. That deal alone is expected to grow the Scottish economy by £190m annually.
Sir Keir 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.”
Douglas Alexander, Secretary of State for Scotland, 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.”
Mark Kent, chief executive of the Scotch Whisky Association, said: “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 cut “has the potential to re-energise exports of Scotch to this important market”, he said.
#Starmer #secures #China #tariff #cut #Scotch #whisky #Daily #Business