Priorities have been set out for the Scotch whisky sector as the Brexit transition agreement is poised to be approved by EU leaders.
The industry is considered to be strategically important to both the Scottish and wider UK economy, making up more than 20% of all UK food and drink exports. Last year, 39 bottles were shipped overseas every second, valued at £4.36billion.
As a result the Scotch Whisky Association (SWA) has set out the priorities for the industry following the UK’s exit from Europe.
Chief executive Karen Betts said: “We are looking forward to agreement today on a Brexit transition period, which we understand will provide welcome reassurance about the rules and export procedures we will need to comply with after March 2019. The transition period should last as long as is necessary to ensure a smooth Brexit for businesses and citizens in the UK and Europe. Businesses should not have to make systems changes twice, and every effort should be made to avoid disruption to trade at the end of the transition period. December 2020 is a very tight timeline and this should be reviewed if necessary.
“It is vital that the withdrawal agreement is swiftly ratified by the European and UK parliaments. Until this point, the transition period does not have legal effect, which is a concern for businesses.”
She added: “Trade between the UK and EU should be as straightforward as possible after the transition period concludes. As 30% of Scotch whisky exports go to the EU, and while these are not susceptible to increased tariffs after Brexit, maintaining zero tariffs on imported materials like glass, machinery and packaging will be important to us. Beyond the EU, we would like to see the UK develop ambitious plans for trade deals with markets that are important to our future growth, such as India and China.”
Comment, Page 27