Scotch Whisky Association welcomes Latin American free trade deals
11 Dec 2012
The already growing market for Scotch Whisky in Latin America
receives a further boost today (11 December) with the signing of
two agreements to create fairer market conditions.
The European Union's Free Trade Agreement (FTA) with
Colombia/Peru and its Association Agreement with Central America,
ratified today by the European Parliament, will create a more level
playing field for Scotch Whisky imports in these growing
Direct Scotch Whisky exports to Central and South America
reached £489mlast year, up 38% on 2010. Exports to Peru
increased by 97% to £18m in 2011 and to Colombia they were up by
74% to £24m. However, Scotch Whisky is still a relatively small
part of the spirits markets in these countries, meaning there is
great potential for more growth.
The Central America Association Agreement covers the markets of
Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and
The main benefits of the agreements for Scotch Whisky are:
- The gradual elimination of the tariffs on EU spirits, including
Scotch Whisky. The tariff on whisky is currently 15% in Colombia
and 9% in Peru. In Central America, tariffs range from 5% in
Honduras to 30% in El Salvador.
- New mechanisms to tackle discriminatory taxation, such as
excise taxes that favour locally produced spirits in Colombia and
- Robust legal protection for the Scotch Whisky Geographic
Indication (GI) - this recognises Scotch Whisky as a product only
made in Scotland.
David Williamson, deputy director of international affairs at
the Scotch Whisky Association, said:
"We have been pushing hard in favour of these trade agreements
with Central America, Peru and Colombia. We are delighted they have
now been ratified. The agreements will help deliver a more
predictable and level playing field for Scotch Whisky
"Tariff elimination, new mechanisms to tackle discriminatory
taxes, and better legal protection for Scotch Whisky will all
support industry growth in the region, and therefore the UK economy
which is looking for an export-led recovery."
For more information please contact Rosemary Gallagher, Scotch
Whisky Association communications manager, email@example.com, 0131
222 9230/0743 260 5385
Visit www.scotch-whisky.org.uk where you can download pictures
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