UK seeks removal of Scotch whisky tariff in Australia trade deal

Britain is seeking to remove a 5 per cent tariff on exports of Scotch whisky to Australia in an upcoming trade deal, trade minister Liz Truss said on Thursday.

“A UK-Australia trade agreement would be significant for Scotch whisky and the Union,” she said in a statement.

“I am fighting hard to get these tariffs cut and secure a deal that benefits producers in Scotland and helps the whole of the UK.”

Australia is the eighth biggest market for Scotch whisky exports, worth £113 million last year. The Scotch Whisky Association (SWA) says a tariff cut will help boost sales and support distillers across Scotland.

“We’re looking forward to the conclusion of a free trade agreement with Australia – which will benefit Scotch Whisky exports, our Australian consumers and which will support free and fair trade,” Karen Betts, chief executive of the SWA, said.

“Over the last 10 years, exports of Scotch Whisky to Australia have almost doubled. But they’re subject to a 5 per cent tariff which we’d very much like to see removed, which would help to boost growth in our industry’s eighth largest global market.

“The FTA is also an opportunity to strengthen the legal protection of Scotch Whisky in Australia, and to improve its enforcement. Stopping those who seek to take advantage of the quality reputation of Scotch Whisky with counterfeit Scotch is a priority for us in Australia, as it is in all our export markets.”

A deal with Australia would be the first in a series of “next generation of trade deals” that the government wants to strike with large and fast-growing consumer markets beyond Europe.

Truss and her Australian counterpart Dan Tehan held talks late on Thursday as both countries are seeking to strike a trade agreement by mid-June.

The proposed deal with Australia is the most advanced of several deals being pursued by London.

Member nations of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on Wednesday agreed to allow Britain to start the process of joining the pact.