SCOTCH whisky has survived two world wars, the fall of the British Empire and the Cold War – and will now weather the challenge of Brexit.
Karen Betts, chief executive of the Scotch Whisky Association, insisted the UK’s exit from the European Union represented just the latest upheaval in the industry’s long history.
Citing the turbulent events of the last century – which also included global recessions and prohibition in the US – she added: “The Scotch whisky industry’s resilience and ability to adapt to that change has been critical to its survival.”
Ms Betts demanded zero tariffs be placed on sales of Scotch to Europe after Brexit, alongside a “minimum of regulatory divergence and mutual recognition of geographical indications”.
The former diplomat also said the industry needed at least a year to prepare for any changes to customs and border requirements, meaning plans will need to be put in place by early 2019.
Scotch represents a fifth of all the UK’s food and drink exports, and more than 40 per cent of all EU spirit exports.
Speaking at the SWA’s member’s day in Edinburgh, Ms Betts hailed plans for an EU transition period – but urged it to be ratified swiftly to “remove altogether the risk of a hard Brexit”.
She said: “A third of Scotch whisky exports go to Europe – an established and mature market for Scotch.
"At a minimum, we want to see agreement on zero tariffs, a minimum of regulatory divergence and mutual recognition of geographical indications.
“We will also need sufficient time to prepare for any practical changes that the new trading arrangements might bring.
“If customs and border requirements are going to change, we will need at least a year to prepare for these.
“That means any new trade deal, which in itself will have to be ratified, being tied up early next year.”
Ms Betts called for “proper attention” to be given to non-EU markets, adding that the EU currently has trade agreements with more than 100 countries.
She said 24 of these were “very important to Scotch whisky” – such as the agreement with South Korea – and their loss would be a blow to the industry if similar arrangements were not swiftly put in place “on as good or better terms”.
The loss of these 24 agreements would cost the industry more than £50 million annually, she insisted.
Ms Betts highlighted the “risks to global trade of rising protectionism” and called for fair taxes and business rates.
Deputy First Minister John Swinney also raised the “pressing and immediate” challenges of Brexit during a speech to whisky leaders.
Referring to the recent court battle between the Scottish Government and SWA over minimum unit pricing, he appeared to admit collaboration between the two had suffered – but insisted “we’re in a different place now”.
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