U.S. and UK officials agreed to continue recognition of the names “Scotch whisky,” “Irish whisky,” “Tennessee whisky,” “Bourbon whisky,” and “Bourbon” in bilateral trade following the UK’s exit from the EU (Brexit). The UK was the top export market for U.S. distilled spirits in 2017, totaling $187 million.
The officials also reached an agreement on wine, including commitments regarding wine-making practices and labeling requirements, will ensure market continuity for bilateral wine trade after Brexit.
In 2017, the U.K. was the largest single market for American Whiskey exports, totaling almost $150 million; American Whiskey exports to the 28 members of the EU were valued at $667 million.
“Ensuring that our flagship spirits exports — Bourbon and Tennessee Whiskey — will continue to be protected provides our companies much-needed assurances as the U.K. negotiates its departure from the EU,” said Distilled Spirits Council President & CEO Chris Swonger.
Distinctive product recognition for “Bourbon” and “Tennessee Whiskey” by the EU was established through a mutual agreement with the U.S. in 1994. Such recognition is critical to ensure that only products labeled and sold in the EU as “Bourbon” and “Tennessee Whiskey” are made in the U.S., in accordance with U.S. laws and regulations.
Currently the U.S. has agreements on wine and distilled spirits with the European Union which cover trade with the UK by virtue of its membership in the EU.
The agreements are part of a concerted effect by the U.S. and UK to ensure commercial continuity for UK and U.S. businesses, workers, and consumers as the UK leaves the EU.
U.S. Trade Representative Robert Lighthizer notified Congress on October 16, 2018 of the Administration’s intent to enter into trade negotiations with the UK once it leaves the EU.