The producers of the Scotch single malt whistleblower retaliated on Thursday after the United States agreed to suspend one of Scotland’s largest retailers following the idea of a long-term partnership between the US and the European Union with the help of Boeing and Airbus.
Former US President Donald Trump imposed a 25% tax on October 2019 as part of the airline’s trade dispute. When the United Kingdom was no longer a member of the EU, it was a bloc when the tax was introduced.
Earlier this week, the US and the EU agreed to end their dispute, offering a five-year price target for both parties based on a number of factors, including olives and cheese, as well as whiskey.
The Scotch Whiskey Association estimates that taxes contributed a 30% reduction in all U.S. sales, equivalent to about 600 million pounds ($ 850m) in the 18 months to March 2021.
“The agreement eliminates the risk of re-establishing Scotch liquor next month and helps oil exporters to consider returns for shipping to our largest and most important export market,” said Karen Betts, chief executive of the agency.
The US-EU countries were unexpected after United States President Joe Biden made clear his intention to establish a relationship. In March, both sides agreed to temporarily suspend taxes linked to the Airbus-Boeing dispute to discuss a solution.
Following the US-EU agreement, United Kingdom Secretary for International Trade Liz Truss and US Trade Representative Katherine Tai agreed to suspend the five-year rebate.
“The current alliance is growing because of a crisis that is very destructive and means that we can focus more on making trade relations with the US a part of the process, including efforts to combat racial injustice like China and use trade power to build a better return from [coronavirus] the plague, ”said Truss.
Tai said the agreement, in which both parties agreed to form a trade union and work together against “trilateral trade methods” could be built “to ensure fair competition and address the challenges posed by China and other non-market economies”.
Following the UK’s departure from the EU’s economic system earlier this year, it is free to discuss trade with interested countries. Earlier this week, the UK government discussed a trade agreement with Australia that would indicate that prices for a number of items would be cut in the coming years.
Ivan Menezes, Diageo’s chief beverage, said the tax cuts on Scotch whiskey and other recent developments were a clear indication of the potential benefits of Brexit.
“At the end of the debate, a new free trade agreement with Australia that removes the residue from the UK spirits and opens negotiations with India, the world’s largest whiskey market, new UK independence principles now bring significant benefits to Scotch and Scotland,” Menezes said. , whose company is infected with the same type of malt virus as Talisker and Laphroaig.
The Scottish National Party, which oversees administrations in Scotland, urged UK donors to help businesses in need.
“While the announcement is widely accepted after a few months of campaigning for the party, the losses of Scotch’s exports have been well-received, and it will take time for companies to re-emerge,” said lawmaker David Linden.
Under an agreement reached Thursday, the UK will suspend for five years the 25% tax on US rum, brandy and vodka. However, U.S. whiskeys will continue to address 25% of taxes in the UK imposed on the steel and aluminum alliance between the EU and the US.
The U.S. Distilled Spirits Council ratified the agreement on Thursday and hopes to soon find a solution to impose tariffs on US whiskeys, which it says have contributed to a 53% decline in exports to the UK.
“We hope that this increase will also enable the EU and the UK to quickly eliminate American whiskeys,” said Chris Swonger.
A Scotch Whiskey Association associate, Karen Betts, said she hoped this “could be resolved quickly.”
