Trade deals open £100 million worth export markets for alcohol

The government on Thursday said it had negotiated to reduce or remove tariffs on exports of alcohol to several markets around the world, as it eyes a free trade deal with India, one of its biggest whisky markets.

Britain is seeking to negotiate trade deals around the world after it left the European Union, but new International Trade Secretary Kemi Badenoch has also indicated that she wants to remove other barriers to trade.

The trade ministry said that £100 million of export markets had been opened up by removing barriers to trade for the alcohol industry, whose exports reached £6.5 billion last year.

Badenoch said the moves, which reduce or scrap tariffs in Argentina, Angola and Morocco and eased customs issues in Tunisia, were “opening access to new markets and new customers.  ”

“As we line up deals with huge markets around the globe, including India and CPTPP, I can’t wait to celebrate the even greater wins which lie ahead,” she said, referring to the Comprehensive and Progressive Trans-Pacific Partnership which Britain hopes to join.

One of Britain’s most important buyers of whisky is India. The export market for whisky was worth nearly £150m last year in India, but there is a 150 per cent tariff.

The government has said it aims to do a trade deal with India by Diwali, which starts later this month.

“Securing a deal with India to reduce the 150 per cent tariff on Scotch Whisky is the industry’s top international trade priority,” said Mark Kent, chief executive of the Scotch Whisky Association.

“To deliver for the industry, any agreement must open up the market to more Scotch Whisky producers.”