The Prime Minister has secured a significant win for Scotland's
iconic whisky industry, with China agreeing to cut tariffs on
Scotch whisky from 10 per cent to 5 per cent.
The deal, signed during the Prime Minister's visit to Beijing,
will be worth £250 million to the UK economy over the next 5
years. China is currently Scotch whisky's 10th largest market by
value, and this tariff reduction will help Scottish distillers
compete more effectively in one of the world's fastest-growing
consumer markets.
This latest success 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 £190 million
annually.
Prime Minister 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.
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 SWA 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 reduction from 10% to
5% 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.
ENDS
Notes to editors:
- China is the world's second largest economy and the UK's
third largest trading partner, supporting 370,000 British jobs.
- The Prime Minister's visit to China included a delegation of
nearly 60 representatives from British business, sport and
culture.
- The UK-India trade deal is set to grow the Scottish economy
by £190 million a year and could increase Scotch whisky sales to
India by £1 billion annually.
