Close Menu
News

Irish whiskey body calls for end of trade disputes

International trade deals are ‘critical’ to the health of the Irish whiskey category, according to a trade group.

Luxury whisky
Irish whiskey was the fastest-growing spirits category between 2010 and 2020

The Irish Whiskey Association (IWA) has released its Irish Whiskey Global report, highlighting the crucial role that trade agreements play in the category’s growth.

Irish whiskey has experienced a 140% increase in sales from 2010 to 2020. 96% of sales are in markets outside of Ireland, and the US alone accounts for 43% of the spirit’s sales.

Considering the significance of the American market, the IWA has made protecting tariff-free trade with the US its top priority. Last month, the organisation celebrated the lifting of a 25% tariff on certain Northern Irish single malts, part of recent progress in the ongoing Boeing-Airbus dispute.

The IWA is also calling for trade reform in emerging markets to support the diversification of the category’s sales. The report outlined the positive impact of a potential EU deal with the Mercosur bloc, which would eliminate tariffs on spirits in Brazil and Argentina over the course of four years, as well as the benefits of a prospective deal between the EU, the UK and India, which could reduce the latter country’s 150% tariff on imported whiskey.

William Lavelle, head of the IWA, said: “Looking to the future, the Irish whiskey industry can confidently target more growth in more markets, across more sales channels and among more consumer segments. But now, more than ever, international trade policy will be critical to supporting growth and diversification.”

Post-Brexit trade issues for Irish whiskey

The report also emphasised the need for new EU rules of origin concerning the category.

With the end of the Brexit transition period last December, Irish whiskeys with components from Northern Ireland have lost their EU originating status under EU trade agreements with certain markets around the world – meaning these spirits no longer have access to the zero- or reduced-tariff arrangements outlined in those agreements.

In June, the IWA partnered with Dairy Industry Ireland and the Northern Irish Dairy Council to lobby for the resolution of the matter, but ‘responses to date have been disappointing’.

It looks like you're in Asia, would you like to be redirected to the Drinks Business Asia edition?

Yes, take me to the Asia edition No