UK Prime Minister Sir Keir Starmer has secured a deal to slash tariffs on Scotch whisky exports to China by half, a move that will add £250 million to the British economy over the next five years. Starmer reached the agreement during the first visit by a UK prime minister to China since 2018. It cuts import duties from 10% to 5% and includes visa-free entry for British citizens on short-term visits.
The tariff reduction targets China, currently the 10th largest market for Scotch whisky by value. The industry has developed into what the Scotch Whisky Association describes as a "knowledgeable and premium focused market" in recent decades.
The deal follows a similar agreement with India secured months ago that slashed tariffs and could increase Scotch sales by up to £1 billion annually.
Starmer framed the China agreement as proof of economic benefits from international engagement. "Our whisky distilleries are the jewel in Scotland's crown. Having already slashed tariffs on whisky exports to India, we're now doing the same with China - proof that our pragmatic, hard-headed international engagement brings benefits at home," he said.
Industry welcomes deal
Scottish Secretary Douglas Alexander emphasized the impact for Scotland. "This is another tremendous result delivered by the UK Government for Scotland's world-renowned whisky industry. From Delhi to Beijing, this government is opening doors for Scottish exporters and putting money in the pockets of working people across Scotland," Alexander said.
Mark Kent, chief executive of the Scotch Whisky Association, welcomed the development. "The proposed tariff reduction from 10% to 5% has the potential to re-energise exports of Scotch to this important market," Kent said.
Visa agreement reached
The visa agreement allows British passport-holders to enter mainland China for visits under 30 days without prior authorization, though the government has not confirmed a start date. Currently, UK citizens require visas while citizens from 50 other countries, including France and Germany, can enter visa-free. The relaxed rules will support businesses expanding abroad while boosting growth and jobs domestically, the government said.
Starmer arrived in China with a delegation of 54 representatives from British businesses and cultural institutions. He met President Xi Jinping for approximately 80 minutes with full delegations, followed by a 20-minute four-way meeting with senior officials and lunch.
Human rights concerns raised
The Prime Minister raised contentious issues during the visit, including how China jailed Hong Kong pro-democracy campaigner Jimmy Lai, a 78-year-old British national who has spent five years in solitary confinement. Starmer also addressed how China treats the Uighur minority and MPs sanctioned by China.
"Part of the rationale for engagement is to make sure that we can both seize the opportunities that are available, which is what we've done, but also have a mature discussion about issues that we disagree on," Starmer said.
Downing Street confirmed the UK's position calling for Jimmy Lai's immediate release remains unchanged.
Former Labour cabinet minister Harriet Harman, speaking on the Electoral Dysfunction podcast, emphasized the economic focus of the trip. "The overwhelming imperative for the government is to get growth in the UK economy and for people's living standards to improve," she said.
Note: This article was created with Artificial Intelligence (AI).
