SWA: Brexit transition should last ‘as long as is necessary’

The Scotch Whisky Association (SWA) has set out its priorities for Scotch in the wake of the Brexit transition agreement, calling for the transition period to “last as long as is necessary”.

The SWA and Wine and Spirit Trade Association have welcomed the Brexit transition agreement

European leaders have today (23 March) agreed to extend Britain’s EU membership until the end of 2020 at a meeting in Brussels.

However, SWA chief executive Karen Betts said the transition period “should last as long as is necessary to ensure a smooth Brexit” for UK and European citizens and businesses.

“Businesses should not have to make systems change twice, and every effort should be made to avoid disruption to trade at the end of the transition period,” said Betts. “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.”

Betts also stressed that trade between the UK and the EU should be as “as straightforward as possible” one the transition period ends.

“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,” Betts added. “Regulatory divergence must be kept to a minimum given the need for all exports to the EU to comply with EU rules.”

Betts added that she “would like to see the UK develop ambitious plans” for trade deals with markets such as India and China, and secure trade agreements the EU currently has with third countries, such as South Korea.

“For us, there are both advantages and disadvantages to customs union, EEA and EFTA models,” she said. “Ultimately, what we believe will be important is a constructive and open minded approach on the part of negotiators on both sides, such that UK businesses can continue to trade easily and thrive into the future.”

Miles Beale, chief executive of the Wine and Spirit Trade Association (WSTA), also welcomed the transition agreement – but stressed politicians still have a lot of work to do.

Beale said: “It is imperative that politicians do not stop here or rest on their laurels. As the UK is being constantly reminded, nothing is agreed until everything is agreed. This means that politicians on both sides of the channel must, as a matter of urgency, find a mutually acceptable solution for the island of Ireland and agree detailed, practical customs arrangements on which the movement of goods to and from the rest of the EU rely.

“It is only in this way that businesses in the wine and spirit industry will have the certainty they need to plan effectively for the future.”