Irish Whiskey Association: Spirits sector 'uniquely exposed' to tariffs
The Irish Whiskey Association, together with Drinks Ireland, has warned that the Irish and EU spirits sectors remain uniquely exposed, should no resolution of EU - US trade tensions be found.
The organisations have recommended an immediate removal of all tariffs on EU and US spirits, allowing a return to the tariff-free environment in which the sector has "found such success".
According to the Irish Whiskey Association, 95% of Irish whiskey is exported, and exports to the US are worth around €420 million per annum.
Overall drinks exports from Ireland to the US total €865 million every year.
The Irish Whiskey Association believes that the 10% US tariff on Irish whiskey is already costing Irish drinks producers thousands of euro every week.
It said: "This additional cost, coupled with a weakened dollar, is placing major pressure on the sector, and a swift resolution is required.
"The immediate cost implications, together with the deepening trade uncertainty, is negatively impacting markets and business for our distillers and drinks manufacturers throughout the country," the association explained.
Both Drinks Ireland and the Irish Whiskey Association are encouraged by the fact that the European Commission has consistently sought to negotiate a deal and has engaged in discussions with their US counterparts in "good faith".
The groups said: "Irish whiskey, cream and poitín producers appreciate the consultation and communication both the European Commission and the Irish government has engaged in with affected sectors.
"(We) hope that a satisfactory conclusion of these negotiations can be reached, as this would benefit all spirits drinks producers in Ireland."
"A tariff-free environment has worked and will work best for the spirits sector. The spirits sector in both the USA and the EU remain interconnected, however this period of uncertainty and heightened trade tensions puts investments at risk," they added.
According to the Irish Whiskey Association, there are further threats which may impact on the competitiveness of the Irish drinks sector.
It claims that Ireland is the primary importer of US casks in the EU, and that ex-bourbon and ex-American whiskey casks are an integral component of Irish whiskey.
