Tag: trade deals

Prime Minister hails trade deal successes for Scotland

From the Highlands to the Borders, Scottish people are set to benefit from the UK’s landmark trade deals with India, US and EU announced in recent weeks, says UK Government

  • Prime Minister visits historic distillery in Glasgow to discuss trade deal benefits for the Scotch Whisky industry 
  • Follows UK hat trick of trade deals with India, US and EU – improving people’s lives across the country 
  • Deals will help drive growth in Scotland and put more money in the pockets of the hardworking Scottish people

From the Highlands to the Borders, Scottish people are set to benefit from the UK’s landmark trade deals with India, US and EU announced in recent weeks, says the Westminster government. 

The Prime Minister discussed the huge growth opportunities and benefits for Scotland during a visit Clydeside Distillery in Glasgow today. 

Visit comes after Prime Minister visited BAE Govan this morning to announce the Strategic Defence Review, which will see significant investment in Scotland . More than £2 billion a year is already spent by the Ministry of Defence with industry organisations of all sizes in Scotland, supporting over 25,000 skilled jobs in Scotland. 

The world-renowned Scotch Whisky industry is set to boom globally – with the Scotch Whisky Association announcing they forecast £1 billion of extra exports in five years, plus 1,200 new jobs thanks to the tariff reductions as part of the UK-India Free Trade Agreement. 

India is an important market for Scotland, with 457 Scottish businesses exporting a total of £610 million in goods there last year. 

Under the India trade deal, tariffs have been cut on a range of iconic Scottish goods, from whisky tariffs halved from 150% to 75% and dropping to 40% after 10 years to salmon reduced from 33% to 0%. Iconic Scottish brands like Irn Bru and Scottish shortbread will also see reduced tariffs. 

Scotland’s thriving life sciences and health tech hubs will be strengthened by IP commitments on areas such as trade secrets and copyright, helping companies export to India with confidence.

Prime Minister Keir Starmer said: “Our trade deals with India, US and the EU will slash tariffs on key industries and open markets set to help drive growth in Scotland and put money in the pockets of the hardworking Scottish people, delivering on our Plan for Change. 

“Scotland is home to some of the most world-renowned products, which can now be enjoyed across the globe – all whilst saving Scottish businesses money.  

“That is why we have secured these deals, and why we will continue to go further and faster to improve the lives of everyone in the UK.”

Secretary of State for Scotland Ian Murray said: “Our trio of trade deals shows we are championing Scottish products and businesses on the global stage.

“From our world-renowned whisky distilleries to our cutting-edge green energy sector, Scotland has so much to offer international markets. But more importantly as part of our Plan for Change this means more money in people’s pockets.

“By securing better access to the European Union, United States and India, we’re creating real opportunities for Scottish businesses to grow, supporting jobs in communities from the Highlands to the Borders.”

Mark Kent, Chief Executive Officer of the Scotch Whisky Association, said: “As the UK’s largest food and drink export to 180 markets worldwide, Scotch Whisky producers welcome the work being done to reduce trade barriers around the world.

“The landmark UK-India free trade agreement will be transformational for the Scotch Whisky industry over the longer term and has the potential to increase exports to India by £1bn over the next 5 years and creating 1,200 jobs across the UK.

“It’s also constructive to see a potential reduction in the burden on exporters through the UK agreement with the EU.

“We continue to support the UK government’s efforts to address the issue of tariffs with the US and establish a pathway to return to the zero-for-zero tariff arrangement we have had with the US on spirits for more than 30 years.”

The new agreement with the European Union, the UK’s largest trading market, will directly address challenges faced by Scottish exporters since 2019.

The Scottish salmon industry has estimated that between 2019 and 2023, Scottish Salmon export values experienced a net loss of around £75 million. The deal with the EU makes it significantly easier to sell Scottish goods to European markets.

Scotland’s Trade Minister highlights human rights concerns over trade deal with Israel

The UK Government’s intended approach to current free trade agreement negotiations with Israel raises concerns over human rights issues, according to Trade Minister Ivan McKee.

In a letter to Penny Mordaunt, Minister of State for Trade Policy, Mr McKee said the Scottish Government has specific concerns in relation to the human rights record and ongoing conflict in Israel and the Occupied Palestinian Territories.

The Minister also raised that the UK Government has not included a full impact assessment on a potential new deal and how it would impact the UK nations. Mr McKee’s response also states that it is clear no potential benefits from a new agreement would mitigate the negative effects of Brexit.

The letter reads:

Dear Penny

Launch of UK-Isreal Free Trade Agreement negotiations

Thank you for your letter of 20 July announcing the launch of free trade agreement (FTA) negotiations with Israel.

The Scottish Government welcomes opportunities for Scottish businesses and our economy to grow, in particular in trade in services, where the coverage of the existing trade agreement with Israel is limited. However, we must be sure that any new agreement is in the best interests of Scotland and consistent with the principles in Scotland’s Vision for Trade. I wrote to you recently setting out in detail Scotland’s interests in this FTA.

The scoping analysis that you have now published does not give any detail on the likely economic impact of this deal on Scotland. However, any benefits from increased trade will not make up for the loss in trade as a result of Brexit. Given that your own modelling shows the recent deals with Australia and New Zealand are likely to have a detrimental impact on the agriculture and semi-processed food sectors, it is important to see the impact of all proposed FTAs on Scotland and our economy in advance of negotiations.

I have called on the UK Government to ensure that current and future trading partners comply with their human rights and international law obligations. We have specific concerns in relation to the human rights record and ongoing conflict in Israel and the Occupied Palestinian Territories (OPTs). In particular, we are concerned about reported labour rights violations of Palestinian and migrant workers under Israeli working practices.

It is vital that you ensure that that goods and services sourced from illegal settlements in the OPTs are excluded from this agreement in a way that can be reliably enforced. It is also important that any expansion of trade in architectural and construction services within Israel does not lead to involvement in the punitive demolition and destruction of Palestinian public and private property in the OPTs, which is a violation of international law.

It is disappointing that you have not undertaken a human rights impact assessment in advance of negotiations, as we have consistently called for, but urge you to fully consider these important issues and use the trade negotiations to progress human rights objectives.

I would also welcome further information on what plans you may have to similarly develop the current trade agreement with the Palestinian Authority of the West Bank and the Gaza Strip.

As you know, I have repeatedly made the case for a full role for the Scottish Government and Scottish Parliament in the development of trade agreements. I welcome the engagement that has taken place so far but will continue to press for the Scottish Government to be fully involved in these negotiations to ensure they achieve the best outcome for Scotland and promote human rights.

Ivan Mckee