Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner. Facebook Messenger An icon of the facebook messenger app logo. Facebook An icon of a facebook f logo. Facebook Messenger An icon of the Twitter app logo. LinkedIn An icon of the LinkedIn logo. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Email An icon of an mail envelope. Copy link A decentered black square over a white square.

David Duguid’s claims trade tariffs ‘not the end of the world’ branded ‘nonsense’

Post Thumbnail

Under Secretary of State for Scotland David Duguid has been criticised for claiming trade tariffs were “not necessarily the end of the world”.

Mr Duguid, Scottish Conservative MP for Banff and Buchan, said people might not be able to get “the pasta shapes” they like, but trade with Europe would continue in the event of a no-deal exit.

David Duguid.

Negotiations between the EU and the UK Government are to spill into next week, after Sunday’s deadline on finalising the agreement came and went without resolution.

Holyrood Cabinet Secretary for Europe Mike Russell slammed the MP’s comments, saying tariffs would be “a disaster”.


What is a tariff?

A tariff, in the simplest sense, is a tax imposed by one country on another’s imported goods.

One of the more recent tariffs placed on UK goods is the 25% one placed on single malt scotch whisky by the American government.

The Trump administration placed the “huge” levy on whisky as part of a dispute over subsidies with Airbus in the EU and Boeing, two aircraft manufacturers.

In November, the EU hit $4bn of US goods with duties of up to 25% in retaliation for illegal state aid given to American aerospace giant Boeing.

The industry continues to be seriously affected by the 25% tariff on single malt Scotch whisky to the United States in place since October last year, which has led to a significant decline in exports to our most valuable market of around £30m every month.”

The Scotch Whisky Association

Last week, the UK Government announced it would suspend tariffs on Boeing on January 1.

There has been no indication on the US side the “crippling” 25% imposition would be lifted on single malt.

The SNP claim the whisky industry could now be hit by a “double whammy” of American and European tariffs, fearing even further harm to whisky exports.

According to new figures from the Scottish Parliament Information Centre (SPICe), tariffs on the Scotch whisky sector imposed by the US in October 2019 cost the industry £176 million in the first part of 2020 alone.

The type of tariff placed on whisky exports to the US are different to the ones which would be placed on those going to Europe.

The Scotch Whisky Association say they are prepared to “weather any disruption” brought by Brexit, but implored the UK Government to push for an exit deal.

Tariffs put on single malt whisky by the US have led to a “serious decline” in export to the industry’s largest market.

A spokeswoman for the SWA said: “The Scotch Whisky industry continues to support a trade deal between the UK and the EU.

“The EU is an important market for Scotch Whisky and our largest export region, accounting for 30% of exports in 2019, valued at £1.47bn. UK and EU negotiators should intensify discussions to deliver a deal which allows for zero tariffs on all goods, protects UK and EU geographical indications, and puts in place governance structures to limit any new barriers to trade from forming.

“The Scotch Whisky industry is well-positioned to weather any disruption brought about from Brexit, however we still want a free trade agreement to be in place to ensure the process is as seamless as possible during a challenging time for distillers.

“New customs and excise procedures will apply to UK/EU trade from January 1 2021, and it is a race against time for businesses to receive all the technical guidance they need. The UK Government is putting in place new IT systems to manage data and declarations, and these must be reliable to ensure imports and exports flow smoothly.

“Industry concerns about adjusting to a new trading relationship with the EU at the end of the transition period have been compounded by the ongoing impact of Covid-19 lockdowns and disruption to the hospitality trade in the UK and our global markets.

“The industry continues to be seriously affected by the 25% tariff on single malt Scotch whisky to the United States in place since October last year, which has led to a significant decline in exports to our most valuable market of around £30m every month.

“Removing the tariffs will alleviate significant pressure on the Scotch Whisky industry and allow us to focus on making the most of the UK’s new independent trade policy and playing our part in the post-Covid economic recovery.”


Scaremongering

The Scottish minister, who replaced Douglas Ross in the role after the latter resigned over the Dominic Cummings “Barnard Castle debacle“, accused a number of MPs and MSPs of “scaremongering” around no-deal Brexit.

He told BBC Politics Scotland: “There is a lot of scaremongering going around, not least by the SNP and others who would have us believe that the sky is going to fall down.”

Mr Duguid went on to say he could not guarantee there would not be food shortages after Brexit, calling it “hypothetical”.

He added: “You may not get the shape of pasta you like, but there will not be the kind of shortages that I think has been reported.”

Mr Russell told the same show that tariffs would be “a disaster”.

Mike Russell

“For Mr Duguid or anybody else to say these are irrelevant is nonsense,” he said.

“Tariffs on land, for example, a big issue in Scotland, would be 60%. That’s not currency fluctuation, that’s disaster.”