WSTA calls on government to let industry lead on Brexit

By Doug Newhouse |

Top WSTA logoThe UK Wine and Spirit Trade Association (WSTA) is lobbying ‘Brexit Ministers’ to allow the industry to head up negotiations ‘to ensure the best possible free trade agreements with the EU and beyond’.

 

As part of this, the WSTA has produced a detailed 24-page position paper entitled, ‘The road ahead for the wine and spirit industry’, which outlines the importance of continued trading relationships between the UK and the EU.

 

The WSTA said: “Up till now Ministers have remained tight lipped over plans for the industry as they devise Britain’s exit from the EU.

 

Miles Beale, CEO WSTA

Miles Beale, CEO, WSTA.

‘UNIQUELY WELL PLACED TO ADVISE GOVERNMENT’

“At a meeting with the Secretary for State for Defra, Andrea Leadsom MP, on Wednesday (Nov 30th) Chief Executive Miles Beale presented the WSTA’s Brexit Policy Paper which shows the wine and spirit industry is united, has clear objectives and is uniquely well placed to advise government.

 

“This included a call for British gin to be given protected status in recognition of its quality and global appeal. Gin is the second largest traded UK spirit after whisky, with three out of every four bottles of gin imported round the world coming from the UK.

 

“The meeting was also used to stress the importance of the UK wine industry to the British economy, worth £2.8bn ($3.4bn) in imported goods and £440m ($540m) in exports. The UK is the largest per capita importer of wine in the world, with France being the UK’s largest wine trading partner by value, worth £1bn ($1.2bn) in trade in 2015.”

 

Beale added: “We import more Champagne into the UK than any other country, making us a crucial trading partner for the French. While government ponder the detail and politics for the road ahead, the wine and spirit trade is getting down to business.

 

Priority trading countries post Brexit

Source: The UK Wine and Spirit Trade Association (WSTA).

 

UK IS WORLD’S BIGGEST WINE IMPORTER

Because the UK is the world’s leading wine importer and home to the biggest European spirits exporters the WSTA is effectively on both sides of the negotiating table. This puts the WSTA in prime position to pave the way for government to seal a good deal with major trading partners in the EU and, eventually, with Third countries too.”

 

In a detailed statement backed up by its report, the WSTA is calling on the government to begin by focusing on sector specific industry trade. It adds that the industry’s detailed Brexit Policy Paper focuses on industry concerns and what needs to be done to keep the UK at the heart of the world’s wine and spirit trade.

 

According to the WSTA, the UK spirit trade alone generates some £28.2bn ($34.6bn) in economic activity, more jobs than any other EU country; and the UK continues to be the world’s biggest wine trading nation, generating a further £17.3bn ($21.2bn) a year.

 

 

 

COMBINED UK WINE AND SPIRIT SECTORS WORTH +£45BN ($55BN) A YEAR

UK wine trade 2016

Source: The UK Wine and Spirit Trade Association (WSTA).

This obviously means that the combined UK wine and spirit sectors are worth more than £45bn ($55bn) a year, while supporting nearly 600,000 UK jobs – both directly and indirectly.

 

With all this in mind, the WSTA Brexit policy paper is said to have been drawn up to establish ‘how best to meet and exploit the challenges of leaving the EU’.

 

Some of the key gains that the WSTA is asking the government to include on behalf of the UK wines and spirits industry in any future negotiation process include the following eight points:

 

 

WHAT WSTA WANTS…

  1. Minimal disruption to existing flows of trade in wines and spirits and exploit Brexit opportunities for enhancing international trade;

 

  1. Government must ensure tariff and quota-free access to the EU market.

 

  1. Work with trading partners to develop model agreements with EU and third countries ahead of Article 50.

 

  1. The UK should immediately join the World Wine Trade Group.

 

  1. Mutual needs post Brexit

    Source: The UK Wine and Spirit Trade Association (WSTA).

    Keep EU definitions for most spirit drinks and most of the current production rules for wine. Use the Great Repeal Bill to remove restrictions whilst maintaining the integrity of categories and brands.

 

  1. Establish a UK system for existing protected designations of origin (PDO’s) and revise current protection for English wine and sparkling wine, as well as a new protection for British gin.

 

  1. Ensure that UK vine growing and wine making continue to be classified as agriculture and allow unrestricted planting of new vineyards.

 

  1. And for any future controls on the movement of people to ensure continued access to a skilled workforce: winemakers, pickers and the hospitality sector.

 

UK SPIRITS INDUSTRY VALUE 2016

Source: The UK Wine and Spirit Trade Association (WSTA).

 

 

TOP TEN TARGET THIRD COUNTRY TRADING PARTNERS

The WSTA has also set out its top ten target Third country trading partners to help government to secure tariff and quota free access. As part of this and since the vote was taken to leave the EU, the WSTA team have already been out Australia, New Zealand and North America to discuss how best to exploit Brexit with its international partners.

 

However, it adds that it is also important to keep trade flowing with the UK’s European partners, which is why discussions have already taken place in meetings with trade partners in Brussels and Strasbourg.

 

Commenting, Wine and Spirit Trade Association CEO Miles Beale said: “For a genuinely global industry like wine and spirits, Brexit will bring both challenges and opportunities.

 

 

 

WSTA REPEATS CALL FOR JOINT BREXIT REPRESENTATIONS

“We understand why government want to keep their Brexit cards close to their chest, but as an industry we hold some very valuable cards and can help Ministers to come up trumps on trade. So we are asking we are asking government to let industry lead.

 

“A lot of work is going on behind the scenes to ensure that industry is on the front foot to help government to prepare the best possible case for uninterrupted trade with the EU, and the best possible platform for bilateral trade deals with priority countries.

 

“We have the expertise within the WSTA and our membership to pave the way for a smooth Brexit for our world-leading industry. The size and the contribution made by the wine and spirit industry to the UK economy should not be ignored; and its influence with key trading partners should not be underestimated.”

 

For any readers who would like to see the full WSTA Brexit policy paper, it can be found at the following link: http://bit.ly/WSTABrexit

 

 

 

 

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