Oral Answers to Questions

Drew Hendry Excerpts

Thursday 20th January 2022 Commons Chamber

[Anne-Marie Trevelyan]

From services and digital to investment and intellectual property, we are aiming for a broad and ambitious deal with India that delivers for both businesses and consumers alike. The first round of negotiations started this week and we hope the second round of talks will be in March, at which point we will have the opportunity to shape and see the scope of the FTA that both countries want to work towards. We will confirm that at an appropriate time as the negotiations progress. We very much hope to reach a mutually beneficial agreement by the end of this year.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Scotch whisky exports to India, the world’s largest whisky market, have declined dramatically since 2019. A year on from Brexit, the Government can no longer deflect to the EU for their failure to deal with the eye-watering 150% tariffs that apply to Scotch whisky sales to India. Will the Secretary of State confirm today that her Government will finally make the removal of those tariffs a priority?

[Anne-Marie Trevelyan]

As the hon. Gentleman says, British products such as Scotch whisky and cars currently face substantial barriers to trade in the form of tariffs of well over 100% on their import into India. The reduction of tariff barriers would be a golden opportunity for UK exporters and, indeed, slash tens of millions of pounds off costs. We will put forward our position in a number of areas, including in respect of Scotch whisky, in the first round of negotiations in the next two weeks. We will make clear the issues that are important to us so that we can achieve a successful, mutually beneficial FTA for all sides.

[Drew Hendry]

The whisky industry is used to dealing with weights and measures, but it has been waiting for too long for measures from this Government. Will the Secretary of State confirm what target has been set for tariff reduction for Scotch whisky? Is it half, more than half or—what the industry needs—the complete removal of that 150% tariff? What is her measure of success?

[Anne-Marie Trevelyan]

The hon. Gentleman would be surprised if I were to disclose the details of my negotiations mandate at this point, but I think I have already been clear—I will say it again—that it is important that the trade deal is mutually beneficial, and the reduction of barriers to trade such as tariffs will be an important point of the UK’s negotiating mandate.