Whisky chief fears Brexit harm to trade

Disruption: Loss of trade benefits post-Brexit could cost whisky sector tens of millions

The chief executive of the Scotch Whisky Association has warned of a potential multi-million-pound hit to the sector if Brexit negotiations throw up new trade barriers.

Karen Betts told delegates at the association’s members’ day the introduction of tariffs alone could result in a £50 million bill.

She urged the UK Government to ensure the interests of the whisky sector – which is Britain’s single largest food and drink export with overseas sales last year of £4.37 billion – are protected in the current Brexit negotiations.

“We want to continue to be able to export Scotch Whisky to Europe and the rest of the world with a minimum additional cost and complexity, and so our industry can emerge from Brexit in growth,” she said.

“That means zero tariffs, a minimum of regulatory divergence and legal protection in the EU. But it also means continued access to the benefits of EU trade deals with third countries, including South Korea and Colombia.

“We calculate the loss of these trade benefits would cost the industry over £50 million annually in tariffs alone.

“We continue to urge the UK Government to swiftly put in place agreements with those third countries so that Scotch can continue to flourish there post-Brexit and to work on advantageous trade deals with our growth markets, such as India, China and Brazil, to ensure the sector continues to prosper.”

Deputy First Minister John Swinney said confidence in the whisky sector had been bolstered in recent months by investments by several major distillers. He added he was confident there was “opportunity for further growth” of the trade.

Picture: Colin Hattersley. Karen Betts, chief executive of the Scotch Whisky Association, has warned of the potential harmful impact to the sector of a loss of seamless trade.