Calls for 'zero on zero' tariffs for whisky and bourbon as US trade talks begin

It would mean there were no tariffs on Scottish whisky going to America, and bourbon would have no tariffs on import to the UK.

In a joint letter in the eve of a fresh round of talks between the two countries, the unions have outlined the crippling effect of the current taxes on both Scottish whisky workers and bourbon manufacturers.

The Teamsters union, the United Food and Commercial Workers International union and the Liquor & Allied Workers Union have joined GMB in the campaign for action.

The letter, seen by The Herald, explains that the whisky industry has lost £30m a month since the 25% tariffs were imposed by Donald Trump in 2018.

It continues: “Scotch whisky and US bourbon are top imports, each from the other. In the 25 years since transatlantic whisk(e)y tariffs were zeroed out, Scotch Whisky exports to the US grew 270%, and American whiskey exports to the UK grew 410%.

“However, since the imposition of retaliatory tariffs in 2018... sales in both directions have been reduced by one-third.

“Specifically, the U.S. is the largest export market for Scottish Whisky with £1069m of exports in 2019. The tariff of 25% on single malt whisky is costing the Whisky and Spirits industry £30 million per month with the total cost so far £300million.

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“Similarly, American whiskey accounts for 65% of all US spirits exports. The EU is the biggest importer, led by the UK, which was the top market for US whiskey in 2018 among European consumer countries. “Bottom line, the EU’s tariffs on American whiskey is costing American jobs, but a rapprochement between our countries will mitigate the damage.”

The trade secretary said previously she wanted to “consign” the charges to the “rubbish bin of history” and acknowledged the damaging impact they would have on Scottish whisky communities if they remained.

Keir Greenaway, GMB Scotland organiser, said: “Today’s trade talks are a crossroads moment for Scotland’s whisky and spirits.

“Our trade union colleagues in the US agree, these tariffs are a job-killer on both sides of the Atlantic and it is in everyone’s interests for talks to reach a “zero for zero” arrangement for single malt.

“There is no doubt that Scotland is paying the price for the UK Government’s complacency and increasingly the pain is now moving beyond sales and into workers terms and conditions.”

Ms Truss held talks in Washington last month, where she secured an agreement from the US to drop the 25% levy on shortbread, as well as promising no new tariffs on other forms of alcohol, but the Trump administration refused to budge over whisky fees.

An open letter was also sent directly to the Prime Minister yesterday, with more than 700 signatures from whisky workers, families and community groups as well as trade union reps.

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It called Boris Johnson out over previous pledge that leaving the EU meant no more tariffs., stating: “ You told us in November when you visited Roseisle Maltings ‘Coming out of the EU - the tariff vanishes’

“Your Brexit day has been and gone, but the tariff remains...

“It is time for you to be true to your word. You have made much of seeking a positive relationship with the White House but you have nothing to show whisky and spirits workers for it.”

A spokesman for the International Trade department said: “We cannot be clearer on this issue. These tariffs are unacceptable, unfair and harm industry and consumers on both sides of the Atlantic.

“Last month the Secretary of State flew to Washington DC to protest against additional tariffs being imposed on great British products.

“We’re determined to settle the issue as soon as possible to help our struggling producers and continue to raise the issue at the highest levels of the US administration.”