The Prime Minister has secured a Scotch whisky tariff cut in China worth £250 million to the UK economy.
The Prime Minister has secured a significant win for Scotland's iconic whisky industry, with China agreeing to cut tariffs on Scotch whisky from 10 per cent to 5 per cent.
The deal, signed during the Prime Minister's visit to Beijing, will be worth £250 million to the UK economy over the next 5 years. China is currently Scotch whisky's 10th largest market by value, and this tariff reduction will help Scottish distillers compete more effectively in one of the world's fastest-growing consumer markets.
This latest success follows the landmark UK-India trade deal, which slashed Indian import tariffs on Scotch and is set to increase sales to India by up to £1 billion a year. That deal alone is expected to grow the Scottish economy by £190 million annually.
Prime Minister Keir Starmer said:
Our whisky distilleries are the jewel in Scotland's crown. Having already slashed tariffs on whisky exports to India, we're now doing the same with China - proof that our pragmatic, hard-headed international engagement brings benefits at home.
Secretary of State for Scotland Douglas Alexander said:
This is another tremendous result delivered by the UK Government for Scotland's world-renowned whisky industry. From Delhi to Beijing, this government is opening doors for Scottish exporters and putting money in the pockets of working people across Scotland.
Just months ago we secured a trade deal with India transforming the prospects for Scotch in the world's largest whisky market. Now we have delivered again in China.
The message is clear: with the strength and support of the UK Government behind them, Scotland's finest products can reach every corner of the globe. We will keep fighting for Scottish businesses and Scottish jobs.
Mark Kent, Chief Executive of the SWA said:
China is a priority growth market for many Scotch Whisky producers, which in recent decades has developed into a knowledgeable and premium focused market with a strong appreciation of Scotch. The proposed tariff reduction from 10% to 5% has the potential to re-energise exports of Scotch to this important market.
We are very grateful to the Prime Minister and officials on both sides for this welcome development and look forward to working with the UK Government on the rapid implementation of the tariff reduction, as part of wider work to improve competitiveness in all Scotch Whisky's global markets.
