US gives way on spirits' tariffs

IT is appropriate that Irish whiskey and Baileys Irish Cream will be offered to the IS EU trade ministers in Singapore this morning…

IT is appropriate that Irish whiskey and Baileys Irish Cream will be offered to the IS EU trade ministers in Singapore this morning when they convene to consider approving a deal on high tech struck between the European and American negotiators because of a rider which will benefit Irish liquor exports to America.

Because the US stands to get more out of the information technology agreement, the European Union Trade Commissioner Sir Leon Brittan persuaded US officials to agree to a bonus for the EU, the elimination of tariffs on the export of brown spirits from Europe to the United States by the year 2001, three years earlier than planned.

Brown spirits includes Irish whiskey, which Irish Distillers Group currently exports the US at the rate of 3,600,000 bottles a year, almost evenly divided between Jameson and Bushmills but including some smaller brands.

An Irish Distillers spokesman in Dublin said that, as a significant amount of the group's business was in exporting, they wished "to see progress in the removal of tariffs wherever they may exist", and the group "welcomes the decision reached between the EU and the US".

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The Minister for Tourism and Trade, Mr Kenny, said in Singapore last night that the agreement on spirits was "very good news for the Irish drinks export industry which employs some 5,000 people".

The tariffs will be reduced on a phased basis over the next five years.

EU officials expressed surprise at the liquor deal, which also covers white spirits - such as gin and vodka - and benefits mainly Ireland, Britain and France.