Scottish whisky producers will gain enhanced access to China’s growing premium spirits market after the Asian nation agreed to halve import tariffs on Scotch during UK trade negotiations.
The tariff reduction from 10 per cent to 5 per cent will enable Scottish distillers to compete more effectively in China, currently the 10th largest market by value for Scotch whisky. The agreement is projected to deliver £250 million in economic benefits to the UK over five years.
Mark Kent, Chief Executive of the Scotch Whisky Association, described China as a priority growth market that has evolved into a knowledgeable and premium-focused consumer base with strong appreciation for Scotch. He stated the tariff cut “has the potential to re-energise exports of Scotch to this important market”.
The SWA expressed gratitude to the Prime Minister and officials from both nations for the development, emphasising anticipation for rapid implementation of the tariff reduction as part of broader efforts to improve competitiveness across all global markets for Scotch whisky.
Prime Minister Keir Starmer secured the deal during his visit to Beijing, where he led a delegation of nearly 60 representatives from British business, sport and culture sectors. China represents the world’s second largest economy and serves as the UK’s third largest trading partner, supporting 370,000 British jobs.
The Chinese agreement follows closely behind the landmark UK-India trade deal, which dramatically reduced Indian import tariffs on Scotch. That arrangement is forecast to increase sales to India by up to £1 billion annually and grow the Scottish economy by £190 million per year.
Secretary of State for Scotland Douglas Alexander characterised the China deal as “another tremendous result delivered by the UK Government for Scotland’s world-renowned whisky industry”. He noted the government has now opened doors for Scottish exporters from Delhi to Beijing within a matter of months.
Mr Alexander stated the message was clear that Scottish products can reach every corner of the globe with UK Government support, pledging continued advocacy for Scottish businesses and jobs.
The Prime Minister described whisky distilleries as “the jewel in Scotland’s crown” and cited the successive tariff reductions in India and China as proof that pragmatic international engagement delivers domestic benefits.
China’s premium spirits market has developed significantly in recent decades, creating opportunities for high-quality imported products. The tariff reduction positions Scottish distillers to capitalise on this expanding consumer segment while facing less price disadvantage against competitors.
The Scotch Whisky Association will now work with the UK Government on swift implementation of the tariff changes. Further details regarding the timeline for the reduction taking effect are expected as officials from both countries finalise administrative arrangements.
