Chris Swonger, president/CEO, Distilled Spirits Council of the U.S., was jubilant in the wake of the action, said it will help ensure the continued growth of the U.S. spirits industry, promote job growth and drive economic prosperity in the United States.
“The bipartisan agreement supports distillers, farmers and supply chain manufacturers and is evidence of the administration’s commitment to two of our largest export markets. We look forward to building upon the success we have had in the past and to many more years of free and fair trade with both Canada and Mexico,” Swonger said.
Among its provisions, USMCA:
- Maintains duty-free trade in spirits;
- Preserve recognition for “Bourbon” and “Tennessee Whiskey;”
- Secure Mexico’s agreement to take steps to provide distinctive product recognition for “American Rye Whiskey,” a fast-growing category of American Whiskey;
- Reaffirm commitments concerning the internal sale and distribution of distilled spirits;
- And establish new best practices regarding labeling and certifications for beverage alcohol, which will help to facilitate trade in distilled spirits among the three countries.
Elimination of tariffs under NAFTA in 1995 boosted U.S. spirits exports to Canada by nearly 1,700% and to Mexico about 1,500%. In 2018, U.S. spirits exports to Canada were valued at more than $234 million. Exports to Mexico in 2018 were valued at $61 million. In 2018, Canada ranked as the top export destination for U.S. spirits exports and Mexico ranked as the ninth largest.