Scotch celebrates UK-Australia trade deal

Scotch celebrates UK-Australia trade deal

The UK has secured a free commerce settlement with Australia, which can convey an finish to the 5% tariff on Scotch whisky.

Australia Brexit

Australia has agreed a free commerce settlement with the UK, eliminating tariffs for Scotch whisky

The settlement in precept between the 2 nations was introduced immediately (15 June) and can get rid of tariffs on all UK items.

Boris Johnson, UK prime minister, mentioned: “Our new free commerce settlement opens implausible alternatives for British companies and shoppers, in addition to younger folks wanting the possibility to work and dwell on the opposite aspect of the world.

“That is international Britain at its greatest – trying outwards and placing offers that deepen our alliances and assist guarantee each a part of the nation builds again higher from the pandemic.”

Commerce physique the Scotch Whisky Affiliation (SWA) welcomed the free commerce settlement.

Karen Betts, chief government of the SWA, commented: “It’s superb to see the removing of the 5% tariff on Scotch whisky within the settlement in precept between the UK and Australia. This may assist Scotch whisky distillers proceed to develop exports to Australia, which have virtually doubled during the last decade, making Australia our eighth largest market by worth.

“It’s additionally vital to us that commerce with Australia is now tariff-free for Scotch whisky – our desire is at all times for tariff-free commerce, which allows Scotch whisky to compete on a stage enjoying discipline and on the energy of our popularity for high quality.

“We await additional particulars of the settlement in precept. A framework for addressing regulatory limitations to commerce with Australia, to make sure better authorized safety and tax equity for Scotch whisky, can be vital to us, and – if delivered on this settlement – will probably be an actual enhance for the business.”

In different tariff information, final month US distillers had been relieved to listen to the EU would temporarily suspend its proposed tariff increase on American whiskey. The UK authorities additionally began a six week consultation on US tariffs final month, which might take away duties on American whiskey.

US tariffs on single malt Scotch, launched in October 2019, have already value the sector more than £500 million (US$682m) in exports, the SWA warned in February this yr.

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