Brazil offers Scotch whisky protected standing | Politics Information

Brazil has awarded particular protected standing to Scotch whisky – with the UK’s commerce secretary toasting the choice by visiting a distillery in Scotland.

Brazil legally recognised Scotch whisky in the course of the UK’s pre-election interval in June and the transfer is anticipated to provide distillers higher entry to South America’s largest economic system.

The Division for Enterprise and Commerce believes the “geographical indication”, which can make it simpler to deal with counterfeits and enhance confidence amongst distillers, could possibly be price round £25m over 5 years.

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Throughout a go to to Glengoyne Distillery, Commerce Secretary Jonathan Reynolds stated Scotch whisky is “one in every of Scotland’s best merchandise and is in excessive demand throughout the globe”.

He stated Brazil’s transfer would give Scottish distillers “the arrogance they should export to one of many world’s largest economies with out having to compete with pretend knock-offs and pale imitations”.

Mark Kent, chief govt of the Scotch Whisky Affiliation, stated it was the primary overseas product to be granted “denomination of origin standing in Brazil since 2019”, including: “Scotch whisky now sits beside tequila, cognac and champagne with particular authorized safety.

“That is basic to make sure that tens of millions of Brazilians can trust within the high quality and historical past of what they’re shopping for.”

Scotch exports had been price £5.6bn in 2023 – accounting for 74% of Scottish food and drinks exports and 22% of all UK food and drinks exports.

In the meantime, new figures from HM Income and Customs confirmed the Treasury has misplaced almost £300m in tax income from Scotch whisky and different spirits since Jeremy Hunt, the previous chancellor, elevated alcohol responsibility by 10.1% from 1 August 2023 – the most important of its form in additional than 4 a long time.

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Figures for 1 August 2023 to 31 July 2024 present excise responsibility from spirits generated £3.951bn for the general public funds – in comparison with £4.249bn in the identical interval the earlier 12 months – a lack of £298m or £800,000 a day.

The Scotch Whisky Affiliation has urged Rachel Reeves, the brand new chancellor, to reverse the hike within the upcoming funds on 30 October, branding the responsibility enhance a “calamitous determination”.

An HM Treasury spokesperson stated: “We totally again the Scotch trade as alcohol responsibility will stay frozen till February, punitive tariffs have been eliminated, and the pursuits of the sector are defended in buying and selling agreements.”