Keir Starmer secures scotch whisky tariff cut on China visit
The Prime Minister signed a deal to slash levies on whisky, which he dubbed the “jewel in Scotland’s crown”, from 10 per cent to five per cent.
Sir Keir Starmer has secured a deal to slash Scotch whisky tariffs on his trip to “priority growth market” China.
The Prime Minister signed a deal to slash levies on whisky, which he dubbed the “jewel in Scotland’s crown”, from 10 per cent to five per cent.
The UK Government said that the deal, signed during the Prime Minister's visit to Beijing, will be worth £250 million to the UK economy over the next 5 years.
The PM also came to an agreement on visa-free travel to China for UK citizens.
Sir Keir said: "Our whisky distilleries are the jewel in Scotland's crown. Having already slashed tariffs on whisky exports to India, we're now doing the same with China - proof that our pragmatic, hard-headed international engagement brings benefits at home."
China is currently Scotch whisky's 10th largest market by value, and the Government said the tariff reduction will help Scottish distillers compete more effectively in one of the world's fastest-growing consumer markets.
It follows UK-India trade deal, which slashed Indian import tariffs on Scotch and is set to increase sales to India by up to £1 billion a year. That deal alone is expected to grow the Scottish economy by £190 million annually.
Scottish Secretary Douglas Alexander said: "This is another tremendous result delivered by the UK Government for Scotland's world-renowned whisky industry. From Delhi to Beijing, this government is opening doors for Scottish exporters and putting money in the pockets of working people across Scotland.
"Just months ago we secured a trade deal with India transforming the prospects for Scotch in the world's largest whisky market. Now we have delivered again in China.
"The message is clear: with the strength and support of the UK Government behind them, Scotland's finest products can reach every corner of the globe. We will keep fighting for Scottish businesses and Scottish jobs."
The deal was welcomed by industry leaders, who said it “has the potential to re-energise exports of Scotch to this important market.”
Mark Kent, Chief Executive of the Scotch Whisky Assocaition, said: “China is a priority growth market for many Scotch Whisky producers, which in recent decades has developed into a knowledgeable and premium focused market with a strong appreciation of Scotch.
“The proposed tariff reduction from 10% to 5% has the potential to re-energise exports of Scotch to this important market.
“We are very grateful to the Prime Minister and officials on both sides for this welcome development and look forward to working with the UK Government on the rapid implementation of the tariff reduction, as part of wider work to improve competitiveness in all Scotch Whisky’s global markets.”
The travel agreement means that Brits visiting China for less than 30 days will no longer need a visa, Downing Street announced.
It will apply to those travelling to China for business and as tourists and brings the rules for UK visitors in line with those from 50 other countries including France and Germany.
The change will not come into effect immediately, but Beijing is understood to have committed to unilateral visa-free entry for UK citizens with a start date to be confirmed.
British passport-holders currently need a visa to enter mainland China.
“As one of the world’s economic powerhouses, businesses have been crying out for ways to grow their footprints in China.
“We’ll make it easier for them to do so, including via relaxed visa rules for short-term travel, supporting them to expand abroad, all while boosting growth and jobs at home,” the Prime Minister said.
It comes after a key meeting with Chinese President Xi Jinping as Sir Keir seeks to reset relations between the two countries.
Sir Keir met Mr Xi at the Great Hall of the People on the first morning of his trip to China, the first by a UK prime minister since 2018.
He told him he wanted a “more sophisticated” relationship with China at the start of the meeting, while Mr Xi said relations had been through some “twists and turns” in recent years.
The men met with their delegations for about an hour and 20 minutes, followed by a 20-minute four-way meeting with national security adviser Jonathan Powell and Chinese foreign minister Wang Yi and then a lunch that lasted just over an hour.
Sir Keir arrived alongside a delegation of 54 representatives of British businesses and cultural institutions looking to deepen ties with the country.
The Prime Minister also raised “areas of concern” during the talks, Downing Street said.
Sir Keir has faced calls to raise the jailing of Hong Kong pro-democracy campaigner Jimmy Lai and the treatment of the Uighur minority with the Chinese leadership.
He said they had a “respectful discussion” on those issues and that this was “part and parcel of the reason to engage”.
The Prime Minister said: “We raised those issues, as you would expect.
“Part of the rationale for engagement is to make sure that we can both seize the opportunities that are available, which is what we’ve done, but also have a mature discussion about issues that we disagree on.”
Downing Street declined to be drawn on details of the discussions on contentious issues including Mr Lai, MPs sanctioned by China, Uighurs and Beijing’s purchase of Russian oil hit by western sanctions seeking to cripple its war effort in Ukraine.
His official spokesman would not say whether Sir Keir told the Chinese president that Mr Lai should be released, but said that the Government’s position calling for his immediate release has not changed.
According to his son, the 78-year-old British national has spent five years in solitary confinement in treatment which amounts to “torture” under Hong Kong’s new national security law.
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