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UK-Thailand Trade Agreement Trumps Big Win for Scotch whisky

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A trade agreement has been signed between Thailand and the UK to increase trade and investment between the two countries, and Scotch is set to gain from it. UK trade minister Douglas Alexander signed the agreement alongside Thai trade minister Pichai Naripthaphan on 18 September in Bangkok.

Thailand and the UK are working to make it easier for Thai companies to import UK food and drink. Businesses will be able to submit conformity documentation by email instead of visiting the British Embassy. Removing this barrier will earn UK businesses around £40m-£70m over five years.

Thailand and the UK Signs Trade Deal Benefitting Scotch Whisky

scotch Whisky Event

Despite Thailand being the second-largest economy in Southeast Asia, its trade with the UK is worth £5.9 billion annually. The Thai economy is rapidly expanding, and its middle class is expected to double by 2030 to almost 14 million people.

Several Scotch whisky producers are ready for the new opportunity. Debra Crew, Diageo’s chief executive, Talisker, and The Singleton said the company hopes the partnership “will be the first step to resolving costly trade barriers”.

She said of the trade deal: “ASEAN [Association of Southeast Asian Nations] is one of the world’s most vibrant and dynamic regions, full of opportunity for Scotch whisky. We warmly welcome the UK’s participation in the Asian Economic Dialogue and the new Enhanced Trade Partnership with Thailand which will boost trade and investment in this important region.”

There was no silver lining for the sector in the first half of 2024, with exports of Scotch whisky dropping by 18% compared to the same period in the previous year. India presented the only bright spot, with exports rising by 17.3%.

Emily Roads, Head of Trade – Asia Pacific at the Scotch Whisky Association, told the drinks business: “Worth £33m in exports in 2023, Thailand is an important growth market, located in the fastest growing region by volume in the world for Scotch whisky. The industry welcomes the ETP, which will strengthen the UK-Thailand trading relationship. We look forward to working with the UK and Thai governments to realize the opportunities it can provide to improve market access for Scotch whisky in Thailand.”

Warner Williams is an SEO and freelance writer. He likes farming and is a volunteer mathematics and physics teacher. He lives with his wife and daughter in Nicaragua.

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