European spirits abroad generate above €1million every hour for the EU

EU leaders are being urged to ensure minimum possible disruption to trade after the BREXIT vote, as the prospects for future spirits trade remains uncertain.

This week, the European spirits sector is publishing its annual trade report ‘Made for trade: spirits success abroad’ which shows that after a small decrease in 2014, spirits bounced back in 2015 with export sales reaching over €10 billion.  This positive performance makes a significant contribution to EU economies in creating growth and jobs.  However, after the BREXIT vote, the prospects for future spirits trade appear less certain.

“Can we toast a return to growth?” asked Paul Skehan, Director General of spiritsEUROPE.  “We want to celebrate the great performance of our exporters in 2015, offering a net gain to the European economy of almost €9 billion, but we do so with a wary eye to the future as we weigh the possible trade consequences of the BREXIT vote.”

Obviously, the BREXIT vote has imposed itself in the discussion, generating many more questions than answers.  How will current and future EU trade negotiations be affected by the UK referendum to leave?  Certainly, the EU’s trade position looks weaker, as our second biggest economy is shorn from the EU’s overall internal market.  And in what ways might the nearly €3 billion trade in spirits between the UK and the rest of the EU be affected?

“For our sector, and many others, a strong UK within a strong EU is the scenario offering most certainty and the best prospects for growth” said Paul Skehan.  “The referendum decision leads to uncertainty, with likely knock-on effects on investment, jobs and growth – not only within the UK and EU, but around the world”.  That said, Paul Skehan stressed “We will work closely with politicians and our sector colleagues in this new political environment, to ensure the best possible outcome of this divorce.”

The spirits sector has always been a strong supporter for a robust EU trade policy: negotiating ambitious trade deals with key export markets to gain competitive advantage while targeting high import tariffs and other barriers such as discriminatory tax policies, insufficient IP protection and complex custom procedures. Enforcement of existing agreements can also be improved.

“We frequently bring to the attention of the Commission trade-restrictive measures that prevent spirits producers from doing business.  Many of these cases are linked to the lack of enforcement of rules already negotiated at WTO level or in free trade agreements” concluded Skehan.  At the launch of the spiritsEUROPE report, recent problems in Canada, China and Colombia will be highlighted.