China deal will cut tariffs on Scotch whisky, Sir Keir Starmer says
Tariffs on Scotch whisky exports to China are to be halved as a result of a deal struck by Sir Keir Starmer – with the Prime Minister insisting the agreement showed how his Government’s “hard-headed international engagement brings benefits at home”.
Sir Keir said whisky distilleries, which he hailed as the “jewel in Scotland’s crown”, would benefit from the move.
As a result of a new deal agreed during the Labour leader’s trip to China, tariffs on Scotch whisky are to be cut from 10% to 5% – a deal the UK Government said would be worth £250 million to the UK’s economy over the next five years.
China is currently the 10th largest market for Scotch whisky by value, with the new deal coming in the wake of an earlier agreement by the UK Government which cut tariffs on sales of Scotch to India.
Sir Keir said: “Our whisky distilleries are the jewel in Scotland’s crown.
“Having already slashed tariffs on whisky exports to India, we’re now doing the same with China – proof that our pragmatic, hard-headed international engagement brings benefits at home.”
Scotland’s First Minister John Swinney described the deal as “very welcome news”.
Mr Swinney said: “China is a vital market for Scotch whisky exports and one which has grown considerably over the last five years.”
Scotch Whisky Association chief executive Mark Kent said China is a “a priority growth market” for many distilleries, adding that the country had “developed into a knowledgeable and premium-focused market with a strong appreciation of Scotch”.
Mr Kent added: “The proposed tariff reduction from 10% to 5% has the potential to re-energise exports of Scotch to this important market.
“We are very grateful to the Prime Minister and officials on both sides for this welcome development and look forward to working with the UK Government on the rapid implementation of the tariff reduction, as part of wider work to improve competitiveness in all Scotch whisky’s global markets.”
Scottish Secretary Douglas Alexander insisted the tariff deal was “another tremendous result delivered by the UK Government for Scotland’s world-renowned whisky industry”.
The Labour MP said: “From Delhi to Beijing, this Government is opening doors for Scottish exporters and putting money in the pockets of working people across Scotland.
“Just months ago we secured a trade deal with India, transforming the prospects for Scotch in the world’s largest whisky market.
“Now we have delivered again in China.”
The trip also saw Sir Keir secure a deal on visa-free travel to China for UK citizens.
Those visiting the country for less than 30 days will no longer need a visa under the agreement, Downing Street announced.
It will apply to those travelling to China for business and as tourists and brings the rules for UK visitors in line with those from 50 other countries including France and Germany.
The change will not come into effect immediately, but Beijing is understood to have committed to unilateral visa-free entry for UK citizens, with a start date to be confirmed.
Published: by Radio NewsHub