IWA urges ratification of EU-Canada trade deal

The Irish Whiskey Association (IWA) has called for the swift ratification of a trade agreement between the EU and Canada after Europe’s top court ruled the deal is legal.

The IWA has identified Canada as one of the top markets for Irish whiskey growth in the next five years

The Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada was concluded in 2016 and came into transitional effect in September 2017.

The deal aims to increase trade in goods and services, and boost investment. The terms include the removal of most tariffs and greater recognition for geographical indications (GI).

This morning (30 April), the Court of Justice of the European Union (CJEU) ruled that the Investment Court System provided for under CETA is compatible with EU law. There had been concerns that CETA’s provisions to protect investors were in breach of EU law.

Now, all EU member states must ratify the agreement in order for it to be binding. So far, only 12 states have approved the agreement.

Following the court ruling, the IWA is calling for Irish parliament’s Dáil Éireann to ratify the deal.

William Lavelle, head of the IWA, said: “Canada is a growing export market for Irish whiskey. However, sales in Canada are dominated by provincial government liquor control boards whose pricing model for imported spirits has, in the past, proved to be a barrier to the competitiveness of Irish whiskey sales.

“The CETA agreement reformed the model of levies imposed on imported spirits, moving from a per-value charge to a flat per-volume charge. This has greatly benefited sales of premium Irish whiskey in Canada.

“The Irish Whiskey Association has identified Canada as one of the top markets for Irish whiskey sales growth over the next five years. CETA will help us realise that growth.”

Earlier this month, Irish whiskey was officially recognised as a GI product by the European Commission.