After EU tariffs were imposed on U.S. whiskey in 2018, U.S. whiskey exports to the European Union declined 29% between January and November 2019 (compared to January – November 2018). After the imposition of US tariffs on certain European spirits in October 2019, evidence is starting to emerge about similar economic damage.
The Distilled Spirits Council of the U.S. and SpiritsEurope yesterday issued an urgent call for a return to tariff-free transatlantic trade.
“While we recognize the U.S. and EU are trying to solve longstanding trade disputes, distillers on both sides of the Atlantic have become collateral damage in matters that are completely unrelated to the spirits sector. Our industry has a long and active history supporting efforts to liberalize global trade in spirits, which allowed our products to compete freely and fairly in global markets. We are fully committed to working with the EU and U.S. governments to help return our industry to tariff-free trade” added Chris Swonger, DISCUS President/CEO.
“We urge the European Commission to remove the rebalancing tariffs on US Whiskey that were imposed in connection to US steel and aluminum tariffs and to exclude US spirits from the final retaliation list in the Boeing dispute, in case it cannot be resolved beforehand. We also urge USTR to simultaneously remove tariffs on imported EU spirits, as they are exerting a significant negative impact also on the US market” concluded Adam and Swonger.
U.S. jobs have been eliminated and hiring halted due to the current U.S. tariff on certain EU distilled spirits and wines, and up to 78,600 U.S. jobs could ultimately be lost if these tariffs remain in effect or are increased, according to an analysis by the Distilled Spirits Council in a submission to the United States Trade Representative (USTR) as part of its ongoing Review of Action on the enforcement of U.S. WTO Rights in Large Civil Aircraft Dispute.