spiritsEUROPE, the representative body for the spirit industry on a European level, has expressed extreme concern over the EU's decision to impose tariffs on US goods.
The tariffs are a response to US duties on steel and aluminium and will impact a range of goods, including whiskey and other spirits categories from the US.
spiritsEUROPE has called on the EU and the US to keep spirits out of the dispute as it could have a 'hugely damaging' impact on EU companies that produce US spirits, US companies that are heavily invested in Europe, and all actors in the value chain.
The spirits sector is facing a particularly difficult time amid geopolitical tensions and a marked slowdown in many key markets.
'Collateral Damage'
Pauline Bastidon, trade and economic affairs director at spiritsEUROPE, stated, “Yet again, spirit drinks have become collateral damage in an unrelated trade dispute. As highlighted in our numerous engagements with the European Commission over the last seven years, we fail to understand how this will help with the broader, unrelated dispute on steel and aluminium.
“The EU and US spirits sectors stand united in their steadfast commitment to maintaining transatlantic spirits trade tariff-free.”
The 1997 reciprocal zero-for-zero agreement that eliminated tariffs on spirits led to a remarkable 450% growth in transatlantic trade until 2018, before retaliatory tariffs were first introduced, spiritsEUROPE noted.
The return of tariffs would have devastating consequences for the sector and put at risk the transatlantic trade and investment flows that have benefited both sides and created so many interconnections on both sides of the Atlantic.
“The clock is ticking. We urge the EU and the US to keep spirits out of unrelated disputes while they work on resolving their differences and protecting the vitally important transatlantic trade relationship,” she said.
