FOR YOUR INFORMATION
We share below a number of recent developments. As always, we rely on FIVS Members to apprise us of noteworthy matters. Please contact the FIVS Secretariat with items that may be of interest.
International Trade
Australia – United Kingdom: Free-trade deal would remove Scotch whisky export tariffs – Part of the United Kingdom’s new post-Brexit trade deal with Australia would reportedly remove 5% tariffs on Scotch whisky exports to Australia. Scotland’s whisky exports to Australia, which doubled during the past ten years, were valued at £126m in 2020. Farmers in Scotland have reportedly expressed concern about the deal, however, saying that British farms might be unable to compete with cheaper food imports from Australia, which in turn could fuel demands for Scottish and Welsh independence.
- The Scotch Whisky Association has welcomed this move but has called for legal protections for Scotch whisky to be included in any final deal.
European Union – United States: Tariffs from trade dispute over Airbus-Boeing suspended – On 15 June 2021 during the Group of Seven summit, the European Union reportedly reached an agreement with the United States to halt the trade dispute over subsidies for aircraft manufacturers, announcing the suspension of tariffs imposed on European and U.S. goods for five years. E.U. and U.S. officials are also working toward an agreement to address tariffs imposed on industrial metals by the former Trump Administration and Europe’s retaliatory levies on U.S. goods, possibly leading to a lifting of those tariffs by 01 December 2021.
- The Distilled Spirits Council of the United States (DISCUS) has commended the five-year suspension of tariffs on U.S. rum, brandy, and vodka; liqueurs and cordials from Germany, Ireland, Italy, and Spain; and certain Cognacs and other grape brandies from France and Germany as part of the Airbus-Boeing trade dispute agreement. They have, however, urged European and U.S. leaders to take steps to remove the 25% tariffs imposed on American whiskeys by the European Union and the United Kingdom as part of the steel and aluminum trade dispute. Since imposition of the tariffs, American exports to the European Union have reportedly fallen by 35% and to the United Kingdom by 53%. You may also want to review this press release by the National Association of Beverage Importers.
European Union – United States: CEEV and Wine Institute applaud support for wine trade – FIVS members Comité Européen des Entreprises Vins (CEEV) and Wine Institute applauded a statement signed jointly by 86 members of the European Parliament and the U.S. Congress, calling for the elimination of all tariffs on wine traded between those two markets. The statement called for E.U. and U.S. leaders to work toward a “zero for zero” tariff-free wine trade environment to benefit family wineries, farmers, retailers, hospitality businesses, and consumers on both sides of the Atlantic. A copy of the Common Statement on the U.S.-E.U. Wine Trade Relationship and a list of signatories can be found here.
International Organisations – WHO
Global: Release of first draft on WHO’s Global alcohol action plan – The WHO Secretariat has published the first draft of its Global alcohol action plan (2022-2030) to strengthen implementation of the Global Strategy to Reduce the Harmful Use of Alcohol on its website. The language has changed little from the Working Document published in late 2020, although several new actions have been proposed for WHO member states and the WHO Secretariat. FIVS representatives will be present at the WHO’s meeting with economic operators on 29 June 2021. The WHO Secretariat also intends to conduct a web-based consultation for member states, international organisations, and non-state actors on the first draft, although the details are not yet known.
- FIVS’s Social Sustainability Working Group has been engaged with the WHO on reducing the harmful use of alcohol. Those FIVS members wishing more information should contact Bennett Caplan at the FIVS Secretariat.
Social Media Platforms
Global: YouTube bans alcohol from most prominent ad slots – As of 15 June 2021, YouTube will no longer accept advertisements relating to alcohol beverages, gambling, elections and political content, or prescription drug terms for its master head advertisement slot, which appears at the top of their website and app. The prohibited category regarding alcohol includes assets that depict or reference alcohol-related content, including ads promoting the sale of alcohol beverages as well as branding or informational ads focusing on alcohol beverages. Google had already provided the means for users to limit the number of advertisements related to alcohol beverages and gambling.
Sporting Events
South Africa – Alcohol banned at sporting events, even though spectators still aren’t allowed – By publication in the Government Gazette on 11 June 2021, South Africa’s Minister of Sport, Arts, and Culture has amended regulations seeking to prevent and combat the spread of COVID-19 for areas under his portfolio, including gatherings at sporting events, libraries, museums and galleries, and other venues. The amendments regarding sporting events indicate that teams are limited to “the required number of players” and limit others allowed at the venues to emergency medical teams, broadcast crews and journalists, and necessary employees at the stadiums. Although the rules indicate that spectators are not allowed at the venues, the rules on control measures were amended to include that no consumption of alcohol beverages will be allowed at sporting events, including parks. The author of the article suggests that the rule may foreshadow that alcohol drinks will not be permitted when spectators are allowed to attend sporting events.
Underage Drinking
A proposal for addressing underage drinking – The author David H. Jernigan charges the alcohol beverage sector with making $17.5 billion each year from underage drinking and argues that an independent entity should take this revenue from the alcohol sector – whom he contends cannot be trusted to spend prevention dollars – and distribute it to local communities to reduce and prevent underage drinking. He has based this figure on a survey that he and a colleague performed in 2011, asking 1,032 young drinkers about which brands they consumed, concluding that underage drinkers account for 8.6% of drinks consumed in the United States and 7.4% of dollars spent ($17.5 billion). Dr. Jernigan receives funding from the National Institute on Alcohol Abuse and Alcoholism and the de Beaumont Foundation and also serves as the Scientific Chair of the Global Alcohol Policy Alliance.
NOTE: We make no warranty of any kind regarding the accuracy or completeness of the information in these FIVS Alerts; nor do we necessarily support or agree with views expressed or contained therein.