More than 160 Members of the U.S. House of Representatives called upon the U.S. Trade Representative (USTR) to remove tariffs on EU wine and spirits products.
The bipartisan letter, authored by Representatives Bill Pascrell (D-NJ) and Brad Wenstrup (R-OH) came after WSWA and its member companies engaged Congress over the past two weeks to encourage support for the letter which urges USTR to end the 25% ad valorem tariff currently imposed on certain EU wines, cordials and whiskeys. the letter also discourages any additional tariffs on EU wine and spirits products. USTR recently proposed expanding tariffs to include other wine and spirits categories and is expected to release a decision on August 12, 2020.
“Millions of American families and small business are struggling because of the COVID-19 crisis. Our trade policies need to reflect the current realities. Holding the European Union accountable for their illegal subsidies that hurt American workers is essential. Yet as we seek a resolution for this case, our large bipartisan coalition wants Ambassador Lighthizer to ensure the path forward does not cause unintended hardships for those trying to make ends meet, especially for the food, beverage, and hospitality industries,” Pascrell said.
“Our trade policy needs to reflect the realities of our current situation amidst the COVID-19 outbreak. I support the Administration’s determination to rigorously defend American interests abroad and Ambassador Lighthizer’s continued work to resolve longstanding disputes with the European Union. I urge the Ambassador to consider which American industries have been particularly hard hit and serve us with considerable purpose, and to tailor the U.S. response accordingly,” said Representative Wenstrup.
In a recent study conducted by WSWA, new data analysis based on cargo manifests from the U.S. Department of Commerce, Bureau of the Census through April 2020 found the U.S. alcohol industry is poised to lose 92,570 jobs and nearly $3.8 billion in wages, costing the U.S. economy $11 billion in 2020 if current tariff levels persist.
The WSWA study did not take into account USTR’s new proposal for additional tariffs on spirits, liqueurs and cordials from all EU members not currently facing tariffs, nor the compounding impact of restaurant and bar closures to the industry due to COVID-19, both of which would exacerbate the negative impacts on the industry.