John Swinney Engages US Ambassador in Vital Whisky Trade Talks

Scottish First Minister John Swinney met with the US Ambassador to the UK, Warren A. Stephens, for crucial discussions regarding the Scotch whisky industry as part of broader UK-US trade negotiations. The United States represents the largest export market for Scotch whisky, making the outcome of these talks particularly significant for the thousands of Scots employed in this sector.

During the meeting, held at Bute House on November 1, Swinney emphasized the economic impact of tariffs on Scotch whisky imports to the US. The industry supports approximately 14,000 jobs in Scotland and contributes about £7.1 billion in gross value to the UK economy. Swinney advocated for a better trade deal to mitigate the adverse effects of tariffs that could threaten these jobs.

Impact of Tariffs on Scotch Whisky Industry

The discussions come in the wake of a series of tariffs imposed by the US government. In April 2023, President Donald Trump announced a new 10% tariff on UK imports, which includes Scotch whisky. Previously, a 25% tariff on single malt whiskies was implemented in October 2019, resulting in an estimated loss of £600 million in sales over 18 months. Although the levy was suspended in 2021 under President Joe Biden, the new tariff affects the entire Scotch whisky sector, rather than just single malts.

Now, the Scottish Government is urging US officials to recognize the mutual benefits of eliminating these tariffs. Swinney pointed out the importance of Scotch whisky to both Scotland and the US, including its connection to the Kentucky bourbon industry. He stated, “A reduction or removal would be in the interests of both countries,” highlighting the shared stakes in maintaining robust trade relations.

Discussion on Energy and Economic Stability

In addition to whisky, the meeting also covered Scotland’s energy sector and the broader economic implications of the UK Government’s energy policy. Swinney has been vocal about the damaging effects of the UK Government’s energy profits levy on investor confidence and stability. He remarked, “I will continue to do all that I can to protect and safeguard this iconic Scottish product.”

As the UK negotiating team prepares for upcoming discussions in the US, Swinney reiterated the importance of presenting a unified front to protect Scotland’s interests. The meeting also included a whisky-focused business reception hosted by Ambassador Stephens at Johnnie Walker in Edinburgh.

Following their discussions, both Swinney and Ambassador Stephens attended the Quilter Nations Series rugby match at Murrayfield, where Scotland achieved a resounding victory over the USA with a score of 85-0. The event underscored the strong cultural ties between the two nations, further solidifying the importance of ongoing trade dialogues.

The Scotch Whisky Association (SWA) has been approached for comment on the outcomes of this significant meeting, as stakeholders await further developments in the negotiations.