Drinks Ireland has called for ‘targeted sector supports for under-pressure businesses to help sustain them as they contend with these new tariffs on exports to the US’.
DRINKS IRELAND AND the Irish Whiskey Association has said it is disappointed that Irish drinks manufacturers have been left out of today’s trade deal between the EU and US.
The EU and US today agreed on a “Framework on an Agreement on Reciprocal, Fair, and Balanced Trade”.
This included pharmaceutical and car exports from the European Union to the United States being subjected to a 15% tariff rate.
EU Commission president Ursula von der Leyen said the15% figure would provide “predictability” following months of Donald Trump’s on-and-off-again tariffs, which included threats that the tax could rise as high as 250% at one point.
Drinks Ireland said it is disappointed that today’s framework agreement did not achieve the “much-needed return to zero-for-zero”.
“This is a missed opportunity to help businesses facing unprecedented and exceptional pressure here,” said Cormac Healy, director of Drinks Ireland, which encompasses the Irish Whiskey Association (IWA).
Healy called for Government and EU negotiators to “continue their work in pressing for reciprocal zero tariff trade on spirits and drinks products between the EU and US”.
However, he added that it is his understanding that a return to the zero-for-zero trading arrangement has been “prioritised by the Irish Government and European Commission in recent negotiations on trade”.
The EU and US agreed to the zero-for-zero arrangement in 1997 and Healy said it “greatly benefitted our shared sector on both sides of the Atlantic”.
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“It is therefore logical to return to this as quickly as possible,” he added.
“As it currently stands, Irish Whiskey and drinks producers face a 15% tariff when exporting to the USA – our biggest market.
“This, combined with a weakened dollar, has placed significant pressure on our distillers, and some have unfortunately had to close their doors.
“A return to zero-to-zero would alleviate pressure on these companies, which account for annual exports valued at €2.1 billion.”
He called for EU negotiators “remain at the negotiating table to secure a swift return to the zero-for-zero trading position”.
“A return to the zero-for-zero arrangement will not only benefit exporters in the EU, but will protect investments and employment on both sides of the Atlantic,” said Healy.
He also called on the Government to deliver “targeted sector supports for under-pressure businesses to help sustain them as they contend with these new tariffs on exports to the US”.
Meanwhile, Eoin Ó Catháin, director of the Irish Whiskey Association remarked that today’s joint statement between the EU and US spoke about an intention to “consider other sectors and products that are important for their economies and value chains”.
He added that there is a desire to not change prices on the shelves, but that that “depends on how negotiations go moving forward”.
He added that tariffs have “impacted on every business”.
“Some distilleries have closed, and I think that is a direct result of the uncertainty that this causes.”
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