Carmichael welcomes Scotch whisky growth potential from UK-India trade agreement

Orkney and Shetland MP, Alistair Carmichael, has welcomed the announcement today of a UK trade agreement with India which will see Indian tariffs on Scotch whisky dropped significantly. Speaking in the House of Commons during a ministerial statement on the deal, Mr Carmichael called for government support to ensure that smaller whisky distillers around Scotland could take full advantage of the opportunity. 

Once ratified, this deal will see the halving of the current 150% tariff on Scotch whisky to 75%, and a staged reduction down to 40% over the next ten years, which has been branded “transformational for the industry” by the Scotch Whisky Association. The SWA has stated that the deal has the potential to increase Scotch whisky exports to India by £1bn over the next 5 years, and create 1200 jobs across the UK.

Speaking in the House, Mr Carmichael said:

“Those of us who have Scotch whisky industry interests in our constituencies this is very welcome news – apparently globalisation isn’t dead after all. 

“When the minister speaks about this being a deal that opens doors, what assistance will be given to British companies to ensure that especially SMEs are able to maximise the benefit that they will be able to derive from trading in this very important market?”

Responding for the government, Trade Minister Douglas Alexander MP said:

“There will be specific provision for SMEs as part of this deal, because we recognise that the huge Indian market can often be a challenge for businesses that don’t have the capabilities of larger businesses. 

“I am also grateful to him for his generous words in relation to the Scotch whisky industry. If you look at the sort of quotes we have been seeing this afternoon from Diageo, from Chivas, from the Scotch Whisky Association, I think he is very much in agreement with the industry in recognising that this a quite extraordinary deal for Scotch whisky.”

Reacting after the exchange, Mr Carmichael said:

“Early indications are that this deal could be a significant boost to our keystone Scotch whisky industry, which would be a major win for businesses in the Northern Isles and across Scotland. What is vital now is that the government delivers on assistance for distillers of all scales to get to market, so that everyone can share this opportunity equally.”