UK-Canada agreement good news for Scotch Whisky exports

Following the news that the UK and Canada have agreed a trade agreement, the SWA has commented on what this means for Scotch Whisky market access and exports to Canada.

Ian McKendrick, International Director at the SWA said: “The Canada-UK trade agreement is good news for Scotch Whisky exports as it aims to secure fairer access for Scotch Whisky to the Canadian market.

“Importantly, the agreement includes commitments to address practices by certain provincial Liquor Boards which currently limit market access for Scotch Whisky. Over 50% of Scotch Whisky exports to Canada are Single Malt Scotch Whisky, making Canada a particularly important export destination for many smaller Scotch Whisky distillers that only produce Single Malt.

“We look forward to future negotiations on a comprehensive Canada-UK bilateral free trade agreement which will provide a further opportunity to ensure Scotch Whisky can compete fairly in the Canadian market. Canada is a whisky loving nation, and with fairer access the industry is confident that we can grow direct exports of Scotch Whisky in the years ahead.”

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Notes to Editors

Canada is Scotch Whisky’s 15^th largest global export market, with exports worth £94.4m in 2019.

The value of Scotch Whisky exports to Canada grew by 5.7% in 2019.

The United Kingdom is an also an important export market for Canadian Spirits, including Canada’s signature products of Canadian Whisky and Canadian Rye Whisky. The value of Canadian Spirits exports to the UK have increased by over 20% since 2017, reaching $3.3 million in 2019.

Each of Canada’s 13 provinces or territories has a Liquor Board or Commission overseeing the control, sale, and distribution of alcohol.  In most provinces, it is not possible for producers to access the market at all if they are not listed by the relevant retail monopoly.  The disciplines agreed under CETA and rolled over under the Canada/UK agreement are intended to ensure that imported spirits are treated on the same basis as Canadian spirits.