The Department for International Trade (DIT) has confirmed that it is examining options for reducing tariffs on UK exports.
With concerns having been aired over the impact of a trade deal with the USA on the Scotch Whisky industry (see Brexit sparks fears of whisky galore), the DIT has moved to reassure businesses that it is seeking to make it easier for UK companies to benefit from post-Brexit trading opportunities.
Figures from the Food and Drink Federation (FDF) show that whisky, salmon and chocolate remain the UK’s top three export products.
DIT staff are now said to be looking at how future trade agreements, and stronger trade ties with key trading partners around the world, could reduce export tariffs for Scotch Whisky, smoked salmon and other iconic Scottish produce.
Tariffs can, of course, be a significant barrier to trade.
While the DIT says that those on smoked salmon average 13%, in the case of Scotch Whisky, tariffs can be over 150% of the value of the product with similar levels applied to gin.
Currently, any changes to export tariffs require negotiations at EU level. With the UK scheduled to leave the Union in March 2019, the DIT stresses that it is working now to assess which markets offer the most potential for UK export growth post-Brexit.
“Reducing the costs for companies to sell overseas will become one way of further opening up free trade routes and boosting sales,” International Trade Secretary Dr Liam Fox agreed.
The DIT also revealed that it has established 11 working groups to strengthen trade and commercial ties with key trading partners around the world, including: Australia, China, India and the USA.
