‘Window of opportunity’ after Biden suspends whisky tariffs
JOE Biden’s move to suspend crippling whisky tariffs on imports to the US has created a “window of opportunity” for a wider trade deal across the Atlantic, according to a senior Conservative.
Greg Hands MP, UK Government Trade Minister, told The Herald that the country was in a “good place” to negotiate a full agreement with the US, and said the tariff suspension was a springboard to end retaliatory fees between the two countries once and for all.
Writing exclusively for The Herald, Prime Minister Boris Johnson has said that Scottish industry has a key role to play in the country’s Covid recovery efforts and hailed the tariff suspension as a sign that the
“UK isn’t afraid to stand up for the rights of British business”.
It was announced yesterday that President Biden has agreed to suspend the 25 per cent levy on Scotch whisky for four months, along with a reduction in tariffs for other goods such as cashmere, cheese and molluscs.
It comes after Trade Secretary Liz Truss announced in December that she would not continue to impose tariffs on US products coming to the UK, such as bourbon and vodka.
Mr Hands said he was unsure if the agreement would have been possible under Donald Trump, adding: “What it does show is the new US administration reacting well to a bold move by the UK
Government.” He added: “It was a very difficult thing to do before, in the kind of the interregnum if you like, without having a US trade tepresentative.
“Now that [Biden’s trade representative] Katherine Tai is getting her feet under the table that has made it possible. I just don’t know whether the outgoing Trump administration would have made the same decision.”
He said the move presents a “window of opportunity” to “solve all of these tariff disputes that we have inherited” and explained: “There’s now a great opportunity for us, working with the new Biden administration to solve this dispute and others because [they] are only harming consumers and businesses on both sides of the Atlantic.”
Ms Truss was criticised widely for the decision not to reimpose the tariffs on US goods in December, mainly by the aviation sector as well as opposition
parties. Labour’s shadow trade secretary Emily Thornberry said Ms Truss was “unilaterally capitulating” without any guarantee that the US would reciprocate.
Mr Hands said that the suspension of the tariffs showed the UK Government’s controversial move had been the right one.
He explained: “We took quite a bit of criticism, mainly from parts of the aviation industry, not to roll over the retaliatory tariffs.
“It was a popular decision with the Scotch whisky industry, a popular decision in Scotland, and I think it’s been proven to be right. We’ve now made really good progress.
“We’re hopeful this shows there is a general signal to come to an overall settlement as well.
“It was a controversial decision but it has been shown to be absolutely correct.”
Despite Ms Truss’s earlier decision only being possible due to Brexit, Mr Hands said he did not want to focus on
the UK leaving the EU, and instead “celebrate the UK and US”.
The tariffs arose as a result of a dispute between the US and EU over illegal subsidies paid to their aircraft manufacturers, Boeing and Airbus, respectively.
A series of tit-for-tat levies were then placed on goods from the EU and US.
Since leaving the EU, the UK has been able to decide its own way forward on tariffs on US products.
The fees had been crippling to the Scotch whisky industry, with exports plummeting by 35% since they were imposed in October 2019, costing half a billion pounds.
Mr Hands paid tribute to the Scotch Whisky Association (SWA) for its efforts in helping with the dispute, as well as consumers.
Karen Betts, SWA chief executive, said the industry was “breathing a sigh of relief”, adding: “The UK Government and the new US administration will now need to work hard on finding a negotiated settlement
to this long-running aerospace dispute. We hope too that both governments will be able to find a rapid, pragmatic solution to the steel and aluminium dispute which still impacts US whisky exports to the UK.
Billy Walker, whisky industry veteran and co-owner of The Glenallachie Distillers Company, said the SWA had “played a blinder”.
He said: “To be honest, I am really surprised as my suspicions were that the new administration would take some time to assess what they had in inherited.
“Those involved in the negotiations from Westminster and Karen Betts at the SWA have played a blinder and they have done an exceptional job for the industry. The US market will always be a key and influential market for The Glenallachie and for the wider Scotch whisky industry.
“The confusion related to tariffs did slow down our progress in the USA, so we are looking forward to getting on with business.”
It was a controversial decision but it has been shown to be absolutely correct