The European Union extended until Aug. 6 its retaliatory tariff, Christine LoCascio, chief, policy, strategy & membership, Distilled Spirits Council of the U.S., told DISCUS's "State of Spirits" briefing.

That's important because the EU is the U.S.'s largest spirits export market, and more than 85% of total spirits exports go to countries to countries that have already eliminated tariffs. And nearly 100% of the spirits that we import are from those countries that have opened markets to our exports.

"So really, continued access to global markets creates jobs and supports rural and urban communities alike and across this nation," LoCascio said. Export markets have become increasing important to the U.S. spirits industry, and DISCUS is continuing to advocate for a return to "zero for zero" tariffs. In 2004, she said, the U.S. exported more than $2.4 billion of spirits from 43 different sates.

While the EU has suspendd tariffs on American spirits, the U.S. imposes a 15% tariff on imports from the EU.

Meanwhile, the U.S. is imposing a 10% tariff on imports from the UK.

LoCascio noted there has also been some progress in terms of reducing tariffs and other barriers to U. S. spirits exports. India, for example, the world largest whiskey market by volume, last year reduced their tariff on American whiskey to 100% from 150%.

In other positive developments, Turkey has lifted its 70% tariffs on American spirits, and "progress has been achieved in El Salvador in terms of removing discriminatory excise taxes, and Malaysia and Cambodia, all three that have pledged to impart these openings for U. S. spirits. These are recent and have not yet been implemented, but we're waiting for their details. But it would certainly be very welcome to see the Malaysia market open, have the tariffs eliminated, and as well as Cambodia," she said.

"This is a testament to the investments in promoting US exports and opening markets around the world. And to the growth of distilleries, small ones across the United States," LoCascio said.

But exports to Canada plunged 73% between March and October as Canadians reacted to threats by President Trump to incoporate Canada into the U.S., using military force, if necessary.

Distinctive Products

What makes the spirits industry unique is the role of disctinctive products, LoCascio said. “Our key spirits, bourbon and Tennessee whiskey, are recognized as distinctive products by 45 major trading partners around the world, including Mexico, Canada, the EU, and UK.

And in return, the US recognizes tequila, mezcal, Canadian whiskey, cognac. and scotch whiskey as distinctive of Mexico, Canada, France, and the UK, respectively.

In other words, These products can only be produced in their designated countries in accordance with strict standards. This protects not only the producers of those products, but also consumers alike. And certainly U. S. consumers love their tequila, mezcal, Canadian whiskey, cognac, and scotch whiskey, just like consumers in Mexico, Canada, and the EU and UK. Love American whiskeys and all other American spirits as well.

"Our industry fully supports expanding U.S. Manufacturing and jobs from farmers all the way through the hospitality industry to bartenders, restaurant owners, retailers, and everyone in between," LoCascio said.