The Irish Whiskey Association with Drinks Ireland have warned the Irish and EU spirits sectors remain uniquely exposed should no resolution of EU-US trade tensions be found.
Irish whiskey is facing a 10% tariff on exports to the USA, its biggest market and where 95% of Irish whiskey is exported to.
Exports to the US are worth around €420m every year and overall drinks exports from Ireland to the US total €865m per annum.
A spokesperson for the organisations said that a tariff-free environment has worked and will work best for the spirits’ sector.
“From the introduction of zero-for-zero tariffs in 1997 until 2018 with the steel/aluminium dispute, the value of the spirits sector on both sides of the Atlantic experienced a growth of 450%.
“The spirits sector in both the USA and the EU remains interconnected, however this period of uncertainty and heightened trade tensions puts investments at risk.”
Tariffs
The Irish Whiskey Association with Drinks Ireland have called for an immediate removal of all tariffs on EU and US spirits, allowing a return to the tariff-free environment.
The organisations cited further threats on the competitiveness of the Irish drinks sector. Ireland remains the primary importer of US casks in the EU and if the retaliatory tariffs for steel/aluminium continue, casks will be subject to a 25% tariff.
These developments come against the backdrop of the UK-India Free Trade Agreement which ensures an immediate 50% reduction in tariffs for UK whiskies and spirits to India.
“The 10% tariff is already costing Irish drinks producers thousands of euro every week. This additional cost, coupled with a weakened dollar, is placing major pressure on the sector, and a swift resolution is required,” added the spokesperson.
“The immediate cost implications, together with the deepening trade uncertainty, is negatively impacting markets and business for our distillers and drinks manufacturers throughout the country.”
Read more
Farming braces for Trump's trade war
Progress on Carlow maltings plans
Progress made to ‘protect’ Irish dairy and whiskey from tariffs - Harris
That's the spirit: Irish distillers on the cutting edge of innovation
The Irish Whiskey Association with Drinks Ireland have warned the Irish and EU spirits sectors remain uniquely exposed should no resolution of EU-US trade tensions be found.
Irish whiskey is facing a 10% tariff on exports to the USA, its biggest market and where 95% of Irish whiskey is exported to.
Exports to the US are worth around €420m every year and overall drinks exports from Ireland to the US total €865m per annum.
A spokesperson for the organisations said that a tariff-free environment has worked and will work best for the spirits’ sector.
“From the introduction of zero-for-zero tariffs in 1997 until 2018 with the steel/aluminium dispute, the value of the spirits sector on both sides of the Atlantic experienced a growth of 450%.
“The spirits sector in both the USA and the EU remains interconnected, however this period of uncertainty and heightened trade tensions puts investments at risk.”
Tariffs
The Irish Whiskey Association with Drinks Ireland have called for an immediate removal of all tariffs on EU and US spirits, allowing a return to the tariff-free environment.
The organisations cited further threats on the competitiveness of the Irish drinks sector. Ireland remains the primary importer of US casks in the EU and if the retaliatory tariffs for steel/aluminium continue, casks will be subject to a 25% tariff.
These developments come against the backdrop of the UK-India Free Trade Agreement which ensures an immediate 50% reduction in tariffs for UK whiskies and spirits to India.
“The 10% tariff is already costing Irish drinks producers thousands of euro every week. This additional cost, coupled with a weakened dollar, is placing major pressure on the sector, and a swift resolution is required,” added the spokesperson.
“The immediate cost implications, together with the deepening trade uncertainty, is negatively impacting markets and business for our distillers and drinks manufacturers throughout the country.”
Read more
Farming braces for Trump's trade war
Progress on Carlow maltings plans
Progress made to ‘protect’ Irish dairy and whiskey from tariffs - Harris
That's the spirit: Irish distillers on the cutting edge of innovation
SHARING OPTIONS