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U.S. officials said the two “continuity” agreements would ensure that trade in wines and spirits will not be disrupted after the U.K.`s exit from the European Union, scheduled for March 29, amid ongoing political conflicts in London and Brussels. The trade body Distilled Spirits Council of the US (Discus) said it was a “sign of hope that a solution to the weakening tariffs on US and British spirit drinks could be within reach”. Discus also reaffirmed the importance of returning to zero-inch trade and pointed to a 55% drop in US whisky exports to the UK since the introduction of tariffs in 2018. The special recognition of Bourbon and Tennessee whisky by the EU was introduced in 1994 by mutual agreement with the United States. The US-UK Trade Agreement, which contains obligations regarding wine production practices and labelling requirements, will ensure market continuity for bilateral wine trade. The United Kingdom was the fourth largest export market for the United States. Wine products in 2017 worth $227 million. Gregg Doud, Chief Agriculture Negotiator at the Office of the U.S. Trade Representative, and Kim Darroch, British Ambassador to the United States, signed two agreements for wines and spirits on January 31, 2019. One. The United States accepts, within the framework of its legal framework (27 CFR 5.22 or an equivalent succession regulation), the use of the product names `Scotch Whisky`, to limit `Irish whiskeys`, `cognac`, `Armagnac`, `Calvados` and `Brandy de Jerez` to spirit drinks distilled from the Member States of the EC which comply with Council Regulation (EEC) No 1576/89 and the legislation of the Member States, where these products come from.

In addition, it is recognized that these products remain subject to all U.S. labelling rules. B. The EC declares its readiness, within its legal framework (Council Regulation (EEC) No 1576/89, Article 11 or an equivalent Regulation) to limit the use of the product names `Tennessee Whisky`/Tennessee Whiskey, `Bourbon Whisky`, `Bourbon Whisky` and `Bourbon` as the name of Bourbon Whisk (e)y to spirits/distilled spirits from the United States manufactured in accordance with United States laws and regulations (27 CFR 5.22 or equivalent regulation). In addition, it is recognised that these whiskies remain subject to all EC labelling rules. The Distilled Spirits Council welcomed today`s announcement that the United States and the United Kingdom reaffirmed their commitments to protect trade in distilled spirit drinks. The United States and the United Kingdom signed an agreement in January. 31, 2019, this was announced today to ensure that the mutual protection of “Bourbon”, “Tennessee Whiskey”, Scotch whisky and Irish whiskey will continue without interruption when the United Kingdom leaves the European Union (EU), the so-called Brexit. Scotch whisky already enjoys legal protection in the US Federal Code, but this agreement reflects the protection currently offered under the EU-US agreement and ensures the recognition of all British and American whiskies. “Ensuring that our flagship spirits exports – Bourbon and Tennessee Whiskey – continue to be protected, gives our businesses the assurances they desperately need when the UK negotiates its withdrawal from the EU,” said Chris Swonger, President and CEO of the Distilled Spirits Council.

“As the new year approaches, we call on the United States and the United Kingdom to seek a fresh start in trade relations by immediately suspending tariffs on distilled spirit drinks from the United States and the United Kingdom, as they negotiate an agreement to remove retaliatory duties on distilled spirit drinks, which will benefit struggling catering companies on both sides of the Atlantic.” said DISCUS. Two agreements to maintain the circulation of wines and whiskies between the United States and Britain after Brexit have been signed by both countries….

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