The Irish Whiskey Association has briefed media about its alarm over the potential impact of a 200pc tariff on whiskey exported to the USA in the fallout from US-EU trade tensions.
Eoin Ó Catháin, the IWA director, emphasised that tariffs create no winners, affecting trade dynamics established since 1997.
Irish whiskey exports to the US are valued at over $800m, and in the other direction Ireland being the fourth largest import market for Kentucky bourbon.
Taoiseach Micheál Martin stated that dialogue between the US administration and the European Commission is essential to resolve trade tensions.
Uncertainty regarding alcohol tariffs poses challenges for |Ireland’s 50 distilleries and related investment decisions.
Mr Ó Catháin told reporters in Washington DC: “We’ve enjoyed reciprocal zero-for-zero trade since 1997. It’s been tariff free for Ireland, the EU and the US, and we’ve had immense success since then. So what we want to make sure now is that we don’t change that. There’s been announcements made, but there’s no tariff implemented. And that does give us limited space. It’s a window of opportunity for a dialogue to start. We’ll have the support from from the Irish government to start those discussions, but we work to do to make sure that it doesn’t get to that. We want to make sure that every consumer can enjoy the spirits that they want – and I think it might be needed after this week.”
Later he shared:“if you look at Irish Whiskey, there were four working distilleries on the island in 2010. Now, there are over 50. And as I say, that’s powered an awful lot by the success of Irish Whiskey in the American market.”
“Ireland is implicated in this because our drinks exports are so important to us. But we also have to look as well at the products that are geographical indications, such as Irish Whiskey, which means that it has to be produced and distilled on the island of Ireland. It’s the same as French Cognac and French Champagne. It’s the same indeed as Kentucky Bourbon”
Pauline Bastidon, director of Trade and Economic Affairs at Spirits Europe shared: “the consequences could be extremely dire on both sides. And we’re an extremely integrated sector. So, you know, you have US companies that have invested in the EU, that produce geographical indications such as Irish Whiskey. On the other side, you also have EU companies that produce US products such as US Whiskey. So the consequences, of course, for all our members, would be extremely serious.”
