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Simon Cotton Life story


Why a row over the jets could increase the cost of whisky

Feb 16,2020 6:50 am

Patricia Dillon is the Managing Director of the Speyside distilleries in Scotland

Scotch Whisky should, in theory, have little to do with airplanes - except, perhaps, as a mid-flight Drink.

This is the reason why independent distillery Manager Patricia Dillon wants to know why the Scotch Whisky industry has pulled"", is a series about Planes .

for US, the starting shot was given to impose duties on $7. 5 billion of EU exports because of illegal subsidies in the European jet manufacturer, Airbus, is provided.

at the Top of Scotch Whisky , the faces is a charge of 25%.

"We are drawn into a trade dispute," says Ms Dillon, Managing Director of the Speyside distilleries in the Scottish Highlands . "It's about the aircraft and it has nothing With Us to do or Scotch Whisky consumers. "

The United States is a Big Business for the Scotch Whisky industry. The value of the exports from the United Kingdom of £280 in 1994 to More Than £1 billion Last year, according to HMRC.

And for The Last 25 years, selling Scotch Whisky in the USA tariff-free.

This means that the US had companies did have to pay an import tax on Scotch-dispatched from the United Kingdom.

For Ms Dillon, America was the next big market Speyside Distillers, to conquer.

The manufacturers of Spey single malt, currently exporting about 10% of the whisky in the USA.

Its largest market is Asia, where the majority of the 600,000 liters of single malt produced each year is sent.

"The Plan was that the USA is a growth market for us," says Ms Dillon.

she says, The Company has for The Last two years have been a journey spent "backwards and forwards" to find The Right importer in the U.S.

Speyside distillery is in the Scottish Highlands

"And now, because of these tariffs, we have set up to us to decide whether, after The Years we spent working on this and for the appointment of an importer, we want to grow in this market, if our margins are getting eaten up 25% of the fare?", she asks.

The charges are not enter into force until 18. October.

Ms Dillon says: "The British government must now both sides are pushing for a negotiated solution and to ensure that these damaging tariffs Will not be effective. "

'Difficult,'

Simon Cotton , Managing Director of Johnstons of Elgin, manufacturers of cashmere and fine knit wool goods, the tariffs have tipped his industry for the benefit of the UK Will be the biggest rival, Italy .

He pointed out that while 25% of the tariffs are proposed to cashmere knitwear is manufactured in the UK, no such duties imposed, on The Italian industry.

"It is the playing field is a little more difficult," says Mr cotton.

Johnstons of Elgin makes knitwear made from cashmere and fine wool

The 222-year-old Scottish company that sells with just over 1,000 people, his sweater, the US for More Than a century.

Johnstons of Elgin's third-largest market after Europe and Japan.

in Spite of the benefits potentially Italy , were handed over to ' s knitting industry, Mr cotton hopes that his customers Will remain loyal.

he admits, However, that if the 25% tariff does not come into force later this month, some of the costs to the consumers.

"We Will certainly not be able to absorb all," he says.

On the other hand, prices Will rise before Christmas, because The Company has already shipped, this is good for the festive period.

But Mr. cotton says, that things could be different when It Comes to his orders in January.

In the meantime, he says: "We are still hoping it Will be a kind of shift or reversal. "

Major impact

It is not only in the UK, companies may be tougher times faced.

The United States is also in the planning and implementation of 25% of duties on EU-such as pecorino, prosciutto and parmesan.

The U.S. Specialty Food Association says The Move Will impact 14,000 specialist food retailers across the country.

Salvatore Di Palo know His Family is Italian Food can stand to save a lot of.

It has survived, in New York City for More Than 100 years by the world economic crisis, world war I and II, and a devastating hurricane in 2012.

But he says that the new rates "Will be another disaster".

"It Will not put us out of business, but it Will make it much more difficult," he adds.

Salvatore Di Palo's family appreciates their New York City shop for More Than 100 years,

Mr Di Palo, that His Family imports 95% of the products in the store.

The higher duties do not apply to all, such as Italian wines and Olive Oil .

But the rates hit The Shop a lot of varieties of meat and cheese, which are the biggest attraction for so many Di Palo Fine Food customers.

Mr Di Palo says he expects that he and The Producers in Italy - absorb some of the hits, without the buyers full price increase of 25%.

But a moderate increase, probably, and the decision, contempt fancy European imports do not solve the problem, he warns.

imports of Italian prosciutto in the United States, with 25% tariff

As the demand shifts to American Cheese , he predicts that those producers who take the opportunity to increase the prices also.

"It Will not only affect me. It is every meet," he says.

such As Ms Dillon in Scotland, Mr Di Palo says he hopes that officials from the work of the Problem - over aircraft subsidies, and stop the dispute turning into a Food Fight .

"What has to prove it to hurt, a different industry?", he asks.



trump tariffs, world trade organization, airbus group, european union, food industry, trade, scotch whisky

Source of news: bbc.com

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