We were pleased to welcome our U.S. colleagues from DISCUS to Brussels on 29 March for a series of meetings with US & EU officials in which we stressed the very deep & close links that bind us together. Many of our spiritsEUROPE members have operations in the US and own US spirits brands, and the same is true for many US spirits companies, who have EU products as part of their portfolio.
The highlight of the day was the reception hosted by the U.S. Ambassador to the EU, his Excellency Mark Gitenstein, during which we celebrated the end of tariffs which have hit our industries & companies on both ends and the unity across our two sectors. The decision to suspend these tariffs was probably the best news for us last year, marking a return to the Zero-for-Zero agreement which had been in place from 1997 to 2018 and had supported a growth of 450% in bilateral trade in spirits during that period.
The effects of the tariffs imposed as part of disputes that were completely unrelated to us is clear:
We welcome the tariff suspensions which took place in 2021 as both sides agreed to work on a more permanent solution to their disputes. This was a significant boost to transatlantic trade in spirits and has already allowed companies on both sides to invest in new products and brands across the Atlantic, supporting more jobs – and exports – in the process.
Today, the EU is the biggest export market for US spirits producers, by far. The same is true for EU spirits producers: the US is & will likely remain our first market, with exports worth €3.77 Billion in 2022. This great success story should continue – unless tariffs make an unwelcome return. We want to see more transatlantic trade & investment in spirits going forward, not less. An essential pre-requisite is to draw a line under the disputes of the past and agree to lift the retaliatory tariffs once and for all, so that we may focus on developing a positive agenda across the Atlantic.
How does this translate in practice? DISCUS and spiritsEUROPE have made a joint proposal for a spirits agreement, which would be the gold standard in such agreements and bring our two industries even closer together. While a working group on spirits at transatlantic level would provide a good discussion space on measures considered & adopted on both sides of the Atlantic, it would also be an opportunity to take this already great cooperation one step further, and join forces in tackling barriers that affect our two industries on both sides, while acting as leaders on a range of new topics, not least in the field of sustainability. We could also reinforce our cooperation by strengthening & expanding protection for GIs & distinctive products on both sides. We hope that this proposal, which is focused on building a stronger future together, will receive a warm welcome on both sides of the Atlantic, and that the focus will shift away from past disputes, onto deeper cooperation.
Here’s to a closer collaboration between the EU & US on spirits – and to #ToastsNotTariffs!
