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spiritsEUROPE Wants Zero Reciprocal Tariff for Spirits between EU and US

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.

**Hervé Dumesny, Director General of spiritsEUROPE**

“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.

spiritsEUROPE deeply disappointed over EU announced Tariffs on US Whiskey & spirits

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spiritsEUROPE has said that it is extremely concerned by the announcement of the European Union on rebalancing tariffs on US whiskey and other US spirits categories in response to US tariffs on steel and aluminium. It has urged the EU and the US to keep spirits out of unrelated disputes.

The announcement comes at a particularly difficult time for the spirits sector, amidst geopolitical tensions and a marked slowdown in many key markets. If implemented on 1 April, these tariffs will have a hugely damaging impact on the EU companies that produce US spirits, US companies that are heavily invested in Europe and all actors in the value chain, putting at risk the many jobs they support, including in rural areas.

“Yet again, spirit drinks have become collateral damage in an unrelated trade dispute. As highlighted in our numerous engagements with the European Commission over the last seven years, we fail to understand how this will help with the broader, unrelated dispute on steel and aluminium. The EU and US spirits sectors stand united in their steadfast commitment to maintaining transatlantic spirits trade tariff-free,” said Pauline Bastidon, Trade & Economic Affairs Director at spiritsEUROPE.

The 1997 reciprocal zero-for-zero agreement that eliminated tariffs on spirits led to a remarkable 450% growth in transatlantic trade until 2018, before retaliatory tariffs were first introduced. Their return would have devastating consequences for the sector and put at risk the strong transatlantic trade & investment flows that have benefitted both sides and created so many interconnections on both sides of the Atlantic.

“The clock is ticking. We urge the EU and the US to keep spirits out of unrelated disputes while they work on resolving their differences and protecting the vitally important transatlantic trade relationship,” she said.

spiritsEUROPE launches ‘Objective 2030’

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spiritsEUROPE has launched its ‘Objective 2030’, a detailed roadmap for an EU open trade policy to support competitiveness, resilience and growth for the coming years.

spiritsEUROPE President Ian McLernon said, “Trade and exports have been at the heart of our sector for centuries. Often seen as iconic products and symbols of European culture, EU spirits remain a powerhouse for EU exports, supporting countless jobs in rural communities. However, this success should not be taken for granted. We face significant challenges, from the global economic slowdown impacting consumer purchasing power to growing geopolitical tensions and the increasing weaponisation of trade. To overcome these challenges, we need an open trade policy that fosters competitiveness, resilience, and growth.”

The success of the European spirits sector lies in its ability to balance long-standing traditions and quality passed down through generations with innovation to meet evolving consumer preferences. As a high-value, export-driven sector, the spirit drinks producers showcase how external trade can strengthen EU agri-food production, benefitting both the farmers who supply key ingredients and the rural communities where most production takes place.

The ‘Objective 2030’ roadmap published by spiritsEUROPE at its SUMMIT 2024 calls on the EU to prioritise three key areas. First, the EU must foster a stable and open trade environment for EU spirits by protecting them from unrelated trade disputes, prioritising multilateral solutions, and strengthening public-private cooperation. Second, the EU should deepen regulatory cooperation with third countries to remove and prevent trade barriers. Thirdly, the EU must expand market access and support diversification by concluding ambitious trade agreements with key growth regions, backed by economic diplomacy and promotional activities.

“Delivering significant results on these three calls for action will provide us with more options, greater resilience, and the ability to continue innovating and investing in sustainable practices. This is our vision for an open trade policy agenda that promotes competitiveness, security, and sustainability – one that allows us to keep contributing to the EU agri-food success story, the EU’s trade balance, and rural communities,” concluded Pauline Bastidon, External Trade Director at spiritsEUROPE.