China will reduce the import duty on scotch whisky to 5% from the current 10% following trade discussions between Beijing and London this week.
The permanent cut, which will take effect from 2 February, is expected to be worth around GBP250m (US$345m) over the next five years, according to estimates from the UK Government. Scotch whisky brings in around GBP5bn in annual exports, and China is the category’s tenth-largest market by value.
The Scotch Whisky Association today welcomed the news, saying proposals “have the potential to re-energise exports of scotch to this important market”.
CEO Mark Kent said: “China is a priority growth market for many scotch whisky producers, which in recent decades has developed into a knowledgeable and premium-focused market with a strong appreciation of scotch.”
This week’s announcement follows the UK’s deal with India last year, which saw the rate of duty on scotch cut from the previous level of 150% to 75%. In ten years’ time, the rate will decrease further, to 40%.
