THE Scotch Whisky Association (SWA) has reinforced the industry’s call for trade with the European Union (EU) to continue as seamlessly as possible after Brexit, as new figures revealed a massive hike in global exports of Scotland’s national drink.

The value of Scotch whisky exports surged by 10.8 per cent to £1.97 billion in the first half of the year, driven by the rapid growth of the single malt category and the strength of major emerging markets such as China and India.

Exports of single malts grew by 14.4% to £550m over the period, an analysis of official HM Revenue & Customs figures by the industry body found, signalling that the category now accounts for 28% of the value of all Scotch shipped overseas. And there was growth for blended Scotch abroad, too, with the value of exports rising by 8.9% to £1.26 billion.

The SWA underlined the importance of the EU to the industry’s prospects, as the latest figures confirmed that the giant free trade bloc remains the biggest regional destination for Scotch.

With the EU accounting for 39% of the volume of whisky exported in the first half, and 31% of its value, it said the statistics underscore the importance of the UK achieving a smooth exit from the EU and the “real downsides” of a no-deal Brexit.

SWA international director Sarah Dickson said: “We hope to see a deal reached between the UK and EU and ratified quickly. Until this happens, our industry has to plan for the possibility of an unwelcome no-deal Brexit.

“A no-deal Brexit could have major implications for how we move our products to and through the EU, how we label them, and could even result in the loss of benefits associated with EU free trade agreements the UK is currently party to. The EU is a hugely important market for Scotch Whisky, responsible for over 30% of our global exports, so it is critical we have a comprehensive UK-EU trade agreement in place in the long-term to help sustain this success.”

The overall volume of Scotch exports climbed by 5.6% to nearly 558 million bottles, with the SWA declaring that whisky was shipped to major emerging markets in the first half faster than it has ever been before. Exports to India increased by 44.4% in value to £56.1m and to China by 34.8% to £36.3m. Ms Dickson said: “China is a key market for Scotch whisky with significant potential for growth. The recent reduction of the tariff from 10% to 5% has helped exports grow in the first half of 2018, but the increasingly knowledge about and desire for Scotch in China is a larger contributing factor.”

Other markets which saw rapid growth for Scotch in the first half were Japan, with exports climbing 31.1% to £56.2m, Latvia (up 36.2% to £53.7m), the UAE (up 19.7% to £62.5m) and Brazil (up 32.7% to £29.8m).

There was also growth in the industry’s biggest and most-mature export markets. The US retained its status as the sector’s most lucrative destination as the value of exports shipped across the Atlantic increased by 5.1% to £407.8m. France retained the number two spot by value after exports rose by 0.3% to £198.5m and the number one position by volume, after a 4.5% rise in shipments to 89.7m bottles.

Karen Betts, chief executive o the SWA declared that Scotch “needs support at home” if it is to continue flourishing overseas. She repeated the SWA’s call for duty on Scotch to be frozen in the forthcoming Budget, which will be announced on October 29.

Ms Betts said: “Competitive tax rates are crucial, enabling producers to start-up, scale-up and invest for growth, such that they continue to be the dynamic job-creators, employers, tax-generators and exporters that they are.

“Right now, £3 in every £4 spent on Scotch in the UK is collected in tax by HM Treasury. The industry believes this tax burden is too high, and is more likely to stifle growth than nurture it. That is why we are calling on the Chancellor to freeze duty on Scotch whisky in the Autumn Budget.”