Trade Ministers will meet in Brussels on 15 May – for the second time under the Polish Presidency of the EU – to discuss EU–US trade relations, European economic security, and ongoing EU trade negotiations. Given the strategic and economic importance of external trade for the spirits sector, and in light of current geopolitical tensions, this meeting will be a key milestone for our industry.
While some sectors view trade as a complement to the EU Single Market, for EU spirits, it is a fundamental pillar of continued economic sustainability. Our success story has been built on global engagement, and our competitiveness relies heavily on our ability to serve both established and emerging markets around the world.
The transatlantic relationship is of fundamental importance to this global success for both EU and US spirits. The EU and the US are each other’s largest export markets for spirits, supported by deep-rooted partnerships that are essential to the economic sustainability of EU spirits companies. This vibrant transatlantic trade, fostered by the zero-for-zero agreement that eliminated tariffs on spirits in 1997, led to a remarkable 450% growth in bilateral trade between 1997 and 2018.
Given the strategic importance of this trade route and the significant cross-investments between EU and US spirits producers, spiritsEUROPE urges negotiators on both sides to intensify efforts to secure a return to tariff-free transatlantic trade in spirits, as a matter of urgency, and no later than early July. We trust that these considerations will be top of mind for many trade ministers ahead of the Trade Council on 15 May.
Restoring a functional and mutually beneficial relationship with the US is fundamental, not just for our sector, but for the transatlantic economy as a whole. However, this alone is not sufficient. The EU–China trade relationship is also of paramount importance. The celebration of the 50th anniversary of EU–China diplomatic relations and the upcoming EU–China Summit present an opportunity to reset the relationship towards one that is more balanced, stable, and positive. Removing EU brandies from unrelated trade disputes is essential in this context – and time is of the essence.
As recent years have clearly shown, diversification and open trade are our best protections against geopolitical tensions and economic volatility. In an increasingly uncertain world, companies – not least in the spirits sector – need more options to reinforce resilience and economic security. We therefore welcome the renewed focus on an active trade negotiations agenda under the von der Leyen II Commission.
We call on Member States to support the signature of the EU–Mercosur FTA before the end of the year, and to ensure the successful conclusion of negotiations with India as soon as possible. The recent outcome of UK–India trade negotiations is both a cause for optimism and a source of renewed urgency. It demonstrates that a meaningful outcome on spirits – and many other trade priorities – is achievable but also places the onus on the EU to follow suit, to avoid placing EU products at a competitive disadvantage. This is further underscored by India’s unilateral decision on 13 February to lower tariffs on Bourbon from 150% to 100%, while EU whiskies, Cognac, and other EU spirits continue to face the full 150% duty.
We also call on EU Trade Ministers to encourage an acceleration of negotiations with Thailand, the Philippines, and Malaysia – to reinforce the competitive position of EU spirits in what is one of the most economically dynamic regions in the world.
In so doing, EU trade ministers will not only provide a much-needed boost to the EU spirits sector’s competitiveness, but to EU industries, agri-food sectors and economy as a whole, and answer a long-standing call from 43 European business associations for a bold and open EU trade policy to keep Europe competitive, prosperous & resilient.
