Scotch Whisky Is A Resilient Industry

This article sheds light on the current struggles faced by the Scotch whisky industry, revealing the significant drop in exports during the first half of 2024. The decline in both value and volume is a reflection of broader global challenges, such as inflationary pressures and the volatile international situation. It’s clear that despite its resilience and vast export reach, the Scotch whisky industry is not immune to external factors impacting premium global exports.

The U.S. market, still recovering from the effects of the Covid-19 pandemic and the lingering impact of the 25% tariff, continues to be a key player for Scotch whisky. Mark Kent’s call for the permanent elimination of this tariff is crucial. A more stable trade environment in the U.S. would likely improve the industry’s performance there. On the other hand, India’s strong growth in import volume stands out as a positive, but the current 150% tariff remains a barrier to even greater potential. The SWA’s push for a trade agreement to reduce these tariffs makes sense as India could be a major driver for future growth.

The domestic situation, however, is equally concerning. The 10.1% duty increase in 2023 has had a profound impact, both on the Scotch whisky industry and UK public finances. The loss of £300 million in tax revenue underscores how such a heavy tax burden can backfire, stifling growth and reducing government income. Kent’s appeal to the Labour government to reverse some of this damage by lowering the duty on Scotch whisky is well-founded. The upcoming UK Budget offers a chance for the government to show real support for the industry.

Overall, the article highlights the need for government action to protect and promote Scotch whisky, a key British export. Without a strategic response, including favorable tax policies and strong trade agreements, the industry may struggle to regain its footing in the face of global economic headwinds.