Scotch Whisky Association Welcomes Groundbreaking Trade Deal With Korea
30 Jun 2011
The FTA is the most ambitious trade
deal negotiated by the EU and the first with an Asian country.
Scotch Whisky is expected to be one of the biggest beneficiaries of
the deal as it eliminates Korea's 20% import tariff on spirits.
Scotch Whisky is the UK's largest export to Korea and it is by far
the biggest imported spirits category in Korea.
The agreement also provides legal
protection in Korea for products with "geographical indications",
including Scotch Whisky, and it tackles a number of other barriers
Korea is currently the sixth largest
export market by value and ninth by volume for Scotch Whisky
worldwide, with direct shipments from the UK alone totalling £153
million last year.
Martin Bell, Scotch Whisky Association
Deputy Director - Asia Pacific and WTO, said: "Scotch Whisky is the
UK's single biggest export by value to Korea. Scotch is also the
European Union's biggest wine and spirits export to the market.
This deal will generate significant benefits for the UK and EU
"Despite Korea already being a key
market for Scotch, its performance over the years has been impeded
by the high tariff and other trade barriers in a market where the
domestic spirit, soju, has a 97% market share. The FTA gives
distillers a significant boost as they seek to market their
products to Korean consumers, who already have a taste for Scotch
Whisky, notably premium blends."
While the agreement with South Korea is
confirmation of progress being made on the international trade
agenda, the SWA said there is still a lot of work to be done to
break down barriers in other emerging markets, notably India.