SWA to focus on India, China and Brazil post-Brexit

The Scotch Whisky Association (SWA) has urged the UK government to prioritise negotiating free trade deals with India, China and Brazil post-Brexit, major markets which offer “long term potential” to the Scotch whisky industry.

The Scotch Whisky Association has urged the UK Government to prioritise negotiating free trade deals in India, China and Brazil

The SWA believes establishing a free trade agreement (FTA) in these countries – and the wider Mercosur region of Argentina, Paraguay, Uruguay and Venezuela – could deliver “significant” benefits through the elimination of tariffs and trade barriers.

David Frost, Scotch Whisky Association chief executive, said: “Brexit poses challenges and uncertainty but also brings opportunities if the UK can secure favourable bilateral trade deals with key export markets.

“India, for example, is a growing market for Scotch but we are being held back by a 150% import tariff.

“EU talks with India have proved challenging for a decade now and we hope the UK will now take a fresh approach to securing an ambitious trade agreement.”

The trade body also flagged Angola, Kenya, Nigeria, Burma and Vietnam as fast-growing emerging markets with potential, while Australia and Thailand were recognised as established markets where further growth would be possible if an FTA is struck.

The SWA is also calling for negotiators to ensure the UK continues to benefit from existing EU trade agreements with major whisky markets, such as Colombia, Korea, or Mexico. Uncertainty as to whether these deals could simply be transferred to the UK by each country – rather than re-struck –remains. Vietnam would also come into this category if the EU’s pending deal came into force before the UK leaves.

The trade body has praised the Great Repeal Bill, which will transpose all EU rules into UK law for a provisional period after Brexit, and covers essential rules, such as bottle sizes, labelling, and product definitions.

The SWA has also urged the UK government to ensure that no new domestic tax or regulatory burdens are placed on the category at a time of “continued uncertainty”.

“We want the UK to have an open and liberal trading policy, to put transitional arrangements in place that minimise trade disruption after Brexit, and to negotiate better global arrangements than we currently have,” added Frost.

“An even more trade-focused British embassy network around the world will be needed to make this happen.

“The UK should be a voice for open markets globally. The more open the market, the more Scotch Whisky exports will grow to the benefit of the wider economy.”