Scottish salmon and whiskey are possibly the two most prized products of the United Kingdom. Both are now giving the country another reason to celebrate, since the recently-finalised India-UK free trade agreement (FTA) dropped tariffs on the two, unlocking, what Downing Street calls “a new salmon market”.
The FTA between the UK and India is expected to be formally signed off in the coming weeks, while talks are on with the US and the European Union (EU) to finalise trade talks.
Downing Street, which has been highlighting benefits of the India-UK FTA in an effort to showcase the sectors and regions across the United Kingdom set to profit, said the pact had “unlocked a new salmon market through our deal with India, with tariffs dropping from 33 per cent to 0 per cent”.
“These trade deals deliver long term security for people in Scotland. They will create opportunities for more seamless trade and attract inward investment to grow the economy, making a difference to people’s lives,” UK Prime Minister Keir Starmer said in a statement.
“These changes will be felt everywhere, whether it’s lower food prices at the checkout, more choice for consumers and higher living standards that will improve livelihoods across Scotland,” he added.
Tavish Scott, chief executive of Salmon Scotland, the key representative of the sector, said that securing frictionless access to key markets such as the EU, along with expanding opportunities in India, is crucial to protect their producers from unnecessary barriers like tariffs and red tape.
“Ministers rightly recognise salmon as the jewel in the crown of our world-class produce and its vital role in the economy of coastal communities and across the UK,” he said.
However, in Scotland, the spotlight remains on the whisky industry which is set to see tariffs for exports to India slashed significantly over the next decade following what the UK has dubbed as a “landmark deal” – agreed on May 6 and expected to add an extra GBP 25.5 billion annually in the long run to the current two-way trade of GBP 41 billion.
Under the pact, Scottish distillers will immediately see tariffs halved from 150 per cent to 75 per cent and eventually to just 40 per cent over the next decade.
UK business and trade secretary, Jonathan Reynolds, said the three landmark deals secured this month with the US, India, and the EU have shown their government is serious about striking the deals that our businesses want and need.
“For Scottish businesses, these deals will mean stability and jobs protected as they seize new opportunities to sell to some of our biggest trading partners,” he said.
“From our world-renowned whisky distilleries to our cutting-edge green energy sector, Scotland has so much to offer international markets... By securing better access to the European Union, United States and India, we’re creating real opportunities for Scottish businesses to grow, supporting jobs in communities from the Highlands to the Borders,” added secretary of state for Scotland, Ian Murray.
In India, leading Goa-based whisky producer John Distillers welcomed the India-UK FTA as a “significant step” towards strengthening bilateral trade and economic cooperation between the two countries.
“This may have a short-term impact on Indian products in India, however, we are confident about the quality of our products and believe we can rise to the challenge,” the makers of Paul John whisky said in a statement.
“We also hope that this deal will allow better ease of business for Indian products in the UK. It is crucial to ensure that both nations maintain a level playing field, safeguarding the interests of domestic industries and promoting fair competition,” it noted.
Until further details of the FTA emerge, the Indian distiller said it plans to continue to “build awareness and availability” of its portfolio in the UK.
Other industries boosted by the FTA include soft drinks and food that the UK government says will “ramp up” Scotland’s export economy.
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