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Scotch whisky interests in Europe
04/09/2006
Deputy Enterprise Minister Allan Wilson will represent the interests of Scotland's drinks industry as part of the negotiation on the European Commission's proposed new Spirit Drinks Regulation.
Ahead of the meeting in Strasbourg, he said:
"Whisky is one of Scotland's most famous and most important exports, generating millions each year for our economy and sustaining thousands of jobs.
"It is therefore only right that The Scottish Executive, working in partnership with the UK Government, represents the industry's interests in these EU negotiations.
"Like the Scotch Whisky Association (SWA), I believe that the new legislation proposed by the European Commission will safeguard the quality reputation of spirits such as Scotch Whisky, and protect producers and consumers from unfair competition.
"I particularly welcome the Commission's proposed strengthened definition of whisky, which will be beneficial to the industry.
"There are, however, difficulties concerning the definition of vodka. We want to see an inclusive definition of vodka which will protect current practices. We are confident that there will be an amicable solution and are doing all we can, with our partners in the UK, to work towards this objective.
"We are very grateful to the SWA for all the support and advice they have provided. This is the sort of productive working relationship very much in keeping with 'Scotland's Enterprising Spirit'."
Nick Soper, European Affairs Director at The Scotch Whisky Association, said:
"We warmly welcome the Minister's visit to Strasbourg and the Executive's support by taking this message direct to EU policy makers. The Spirit Drinks Regulation is of fundamental importance to Scotch Whisky distillers.
"Adoption of the proposed definition of 'whisky' at EU level, which expresses traditional practice more clearly, will help to protect both consumers and Scotch Whisky in important export markets."
Key whisky stats:
- Around 41,000 Scottish jobs depend on the production of Scotch whisky - accounting for almost 2 per cent of all jobs in Scotland and generating over £800 million of income in Scotland annually
- At the UK level around 65,000 jobs are supported generating £1.3 billion of income
- Around 7,000 jobs in remote rural areas of Scotland are supported by the whisky industry
- The whisky industry is Scotland's second largest export earning industry (after electronics)
- It is the UK's fifth largest export earning industry (after chemicals, metal goods, textiles and office equipment)
- Whisky exports have exceeded £2 billion for each of the past 12 years
The new Regulation will update and improve existing EU law governing the definition, description and presentation of spirit drinks. This is important legislation which has safeguarded the worldwide reputation for quality of spirits such as Scotch Whisky, and has protected producers and consumers from unfair competition.
The EU Commission brought forward a proposed new Regulation in December 2005. It is currently being considered by Member States at official level and by the European Parliament. The Commission's proposal aims to enhance consumer protection, prevent deceptive practices, ensure transparency in the market, and allow for fair competition.
The draft Regulation sets out an improved description of 'whisky' which expresses current practice more clearly and removes ambiguities in the current legislation. In particular there will be an explicit ban on the addition of other alcohol, sweetening, and flavourings.
The Commission proposes a registration scheme for spirit drinks with Geographical Indications (GIs) - protected names for products produced in specific geographic regions of the EU. This brings EU legislation into compliance with WTO rules.
The Regulation also updates the definition of vodka. Currently, vodka can be made from a number of specified agricultural products including cereals, sugar beet, cane sugar, molasses and grapes. The Commission's draft Regulation maintains this position. However, some Member States are pressing for a more restrictive definition limiting vodka production to ethyl alcohol made from potatoes or cereals only.
The UK - the second largest vodka producer in the EU after Poland - is among a number of countries taking the view that there is no justification for a change of definition. In addition, if the definition were changed it may provoke WTO challenges from countries that use molasses, soya and other raw materials to produce their vodka. It could also provoke legal challenges within the EU.