SCOTCH whisky distillers have called for the transition deal underpinning the UK’s withdrawal from the European Union (EU) to be as long as necessary to ensure a smooth Brexit for businesses and citizens.
Commenting as UK and EU negotiators move closer to finalising a 21-month transition agreement, the Scotch Whisky Association (SWA) signalled its hope that the deal will bring reassurance about the rules and export procedures that it will have to comply with after March 2019.
The EU is the biggest single export market for the Scotch whisky industry, accounting for 30 per cent of the industry’s total overseas sales in 2017. The total value of global exports reached a record £4.36 billion last year.
SWA chief executive Karen Betts said: “The transition period should last as long as is necessary to ensure a smooth Brexit for businesses and citizens in the UK and Europe. Businesses should not have to make systems changes twice, and every effort should be made to avoid disruption to trade at the end of the transition period. 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 business.”
The SWA repeated that whisky exports into the EU will not be subject to import tariffs should the UK and the bloc falls back on to World Trade Organisation rules after Brexit.
However, calling for trade to be as straightforward
as possible after the transition, Ms Betts said: “Thirty per cent 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.
“Regulatory divergence must be kept to a minimum given the need for all exports to the EU to comply with EU rules.”
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