spiritsEUROPE has regretted that the EU-US political agreement has, for now, failed to secure the long-overdue restoration of the zero-for-zero framework for spirits. European Union spirits exports to the US are subject to a 15% import tariff.
“We welcome the broader principle of an agreement to de-escalate trade tensions and provide greater predictability to businesses,” said Hervé Dumesny, Director General of spiritsEUROPE. “While we thank the European Commission for its ongoing efforts to include spirits in the list of exemptions, the failure thus far to reinstate zero-for-zero for our products is a missed opportunity. The continued application of US tariffs on EU spirits, now at 15%, places our products at a substantial competitive disadvantage, limits consumer choice, and undermines investment and growth in our sector on both sides of the Atlantic.”
Originally agreed in 1997, the zero-for-zero arrangement eliminated tariffs on virtually all spirits traded between the EU and the US. It proved to be a powerful engine of economic exchange, boosting transatlantic spirits trade by 450% between 1997 and 2018, spurring cross-investment, and strengthening the cultural and economic bonds between our two sectors. European spirits enjoy strong demand among American consumers, driving substantial growth and job creation both in US retail and hospitality and in the EU regions where these products are made.
“This situation remains unbalanced and unsustainable,” Hervé Dumesny added. “We call on both the EU and the US to stay engaged at the negotiating table and secure the full restoration of the zero-for-zero framework as soon as possible. This must include the permanent removal of US tariffs on EU spirits and the complete repeal of any suspended EU retaliatory measures on US spirits. A truly tariff-free environment is essential to unlock the full potential of our shared industry and safeguard the many jobs it supports, from farmers and distillers to logistics, retail and hospitality across the Atlantic.”
It said that spiritsEUROPE is ready to work constructively with the European Commission, US counterparts, and industry partners to achieve a durable, balanced, and tariff-free solution that reflects the longstanding spirit of EU-US cooperation in the spirits sector.