The Real Reason Scotch May Become Cheaper Soon
Those who love Scotch and wines that come from the UK are in for some good news. Both of the alcoholic imports could be quite a bit cheaper soon enough. So, it's time to start making a wishlist and get ready to go on a shopping spree for your favorite bottles should the price really drop.
Scotch whisky accounts for 20 percent of all food and drink exports in the UK, making it the largest food and drink export. It's so popular that in 2017, 39 bottles were shipped overseas per second. Ultimately, that added up to a value of £4.37 billion or $5.84 billion via Mark Littler). With Brexit looming, Karen Betts, the Chief Executive Officer of the Scotch Whisky Association made a statement at a conference: "Brexit poses challenges for the industry and is likely to be disruptive. We want to continue to be able to export Scotch whisky to Europe and the rest of the world with a minimum of cost and complexity." Brexit definitely appears to be a disruptor (via Mark Littler).
When the UK breaks away from the European Union on Jan. 1 of 2021, they will also drop the EU's tariff policies. That's why prices will likely drop for U.S. citizens looking to buy Scotch among other British beverages (via Food and Wine).
The new price of scotch all comes down to Brexit
If you are wondering why the tariffs were imposed in the first place, it was largely due to an aerospace trade dispute between the U.S. and EU in October of 2019. In November of this year, the EU responded to the tariffs the U.S. had imposed by adding around $4 billion in their own tariffs. Essentially, this resulted in escalation that eventually led to a deadlock for the time being.
Though the stalemate is currently still in place, the UK has apparently made a statement that they plan to drop their tariffs on U.S. goods related to the aerospace dispute, namely Scotch, as soon as they leave the EU come January. "As an independent trading nation once again, we finally have the ability to shape these tariffs," said Liz Truss, the UK's International Trade Secretary, according to the BBC. "Ultimately, we want to de-escalate the conflict and come to a negotiated settlement so we can deepen our trading relationship with the U.S. and draw a line under all this." So keep your eye on Brexit next year and your favorite bottles of Scotch to catch them when prices fall.