America hails record spirits exports to Korea

US spirits exports to Korea have soared by 71% in the last three years following the implementation of a fair trade agreement between the two countries.

Since the declaration of a fair trade agreement in 2012, spirits exported from the US to Korea have increased 71%

According to the Distilled Spirits Council of the United States (Discus), direct US spirits exports to Korea were valued at US$14.5 million in 2014, up from US$8.4 million in 2011.

The US–Korea Free Trade Agreement (KORUS FTA) came into force on 15 March 2012.

As part of the agreement, tariffs on imported Bourbon and Tennessee whiskey, which account for 70% of global US spirits exports, were immediately eliminated.

Meanwhile, tariffs on all other US spirits categories, including vodka, gin and rum, are currently being phased out and are expected to be eliminated by next year.

“The KORUS FTA has leveled the playing field for US spirits by eliminating tariffs, which has led to record exports,” said Christine LoCascio, discus’s senior vice president of international issues and trade.

“As the fifth largest spirits market in the world in volume terms, Korea continues to present a great opportunity for US distillers to expand their exports.”

The KORUS FTA also saw Korea recognise Bourbon and Tennessee whiskey as products exclusively manufactured in the US for the first time.

Last month, Discus revealed that the American spirits industry had continued to steal market share from beer for the fifth consecutive year, with the industry growing total volumes by 2.2%.