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Distillers renew call for zero-for-zero deal with US

The call was made as the industry launched a new tourism initiative aimed at attracting more visitors to distilleries around the country
The call was made as the industry launched a new tourism initiative aimed at attracting more visitors to distilleries around the country

Irish whiskey distillers have renewed their call on the Government and the EU to step up efforts to secure a zero-for-zero trading deal with the US for their products.

The call was made as the industry launched a new tourism initiative aimed at attracting more visitors to distilleries around the country.

The Irish Whiskey Way is designed to showcase 26 distilleries across the island in the five designated tourist regions, including the Wild Atlantic Way, Ireland's Hidden Heartlands, Ireland’s Ancient East, Dublin and Northern Ireland.

A sign reads Irish Whiskey Way
The Irish Whiskey Way was launched at the Kilbeggan Distillery Experience in Co Westmeath

It is aimed at promoting Ireland’s food and drinks trails to international and domestic visitors.

The Irish Whiskey Way was launched by Minister for Enterprise and Tourism Peter Burke at the Kilbeggan Distillery Experience in Co Westmeath.

Mr Burke described it as "a unique initiative that celebrates one of Ireland’s most iconic exports while showcasing the rich culture, heritage and hospitality that makes our country and this region so special".

"This journey will not only highlight the craftsmanship behind Irish whiskey but also connect visitors with the vibrant communities, food experiences and stories that define Ireland," he said.

In the year to June, just over one million people toured Irish whiskey distilleries, a 23% increase in the number of visitors compared to the previous year.

It is hoped the new whiskey trail will help to build on those numbers.

Chief Executive of Tourism Ireland Alice Mansergh said it will provide a boost to the tourism sector.

Director of the Irish Whiskey Association Eoin Ó Catháin speaking to media
Director of the Irish Whiskey Association Eoin Ó Catháin the importance of cooperation 'has never been greater'

Ms Mansergh said it will enable visitors to "experience the 700-year history of whiskey on this island".

"It's really significant that the distilleries themselves have reported a million visitors over the past year, so we can see that at the moment, tourism is good for whiskey, and whiskey is good for tourism too," she said.

Director of the Irish Whiskey Association Eoin Ó Catháin said the new initiative was developed by whiskey distilleries "working together to present a unique food and drink trail to the international and domestic visitor".

Mr Ó Catháin said the importance of cooperation "has never been greater, this year more than ever, and the value of every euro spent in Ireland has never been more appreciated".

The initiative has been launched against the backdrop of the 15% tariffs on goods being exported from the EU to the US, which is the biggest export market for Irish whiskey.

Amid the initial uncertainty over the trade levy, up to 90% of whiskey production here was paused.

While for the most part it has resumed, distillers say the levy is putting significant pressure on the sector, as businesses absorb the costs.

Mr Ó Catháin said about 45% to 50% of Irish whiskey is exported to the US, "so that 15% tariff is a tax on that that ultimately the producers must pay".

Minister Peter Burke speaking outside Leinster House
Peter Burke said there is no doubt tariffs are a 'very significant challenge for the sector'

He said the sector is hopeful because he said there "seems to be some momentum building this week, discussions are ongoing about maybe a tariff exemption for products like ours."

"We know that we have strong advocates, both in government in Dublin, and in Brussels, in the European Commission.

"We need to make sure that we're still in the conversation, and that exemptions, when they do come on the table, include the whiskey sector," he added.

Mr Ó Catháin said the fact that the tariff is there is "still causing some uncertainty".

"It is harder to attract investment. I think what we're seeing is that further investment or further expansion in the US market is now being impacted," he added.

However, Mr Ó Catháin said there are new markets being opened up, as companies diversify.

"We're having great success throughout the EU and throughout emerging markets in Asia and Africa," he said.

In Brussels on Monday, Minister for Foreign Affairs Helen McEntee raised the easing of the trade tariffs on a number of Irish products, including whiskey, at the EU trade council, ahead of talks with US Commerce Secretary Howard Lutnick and trade envoy Jamieson Greer.

Peter Burke said there is "no doubt it's a very significant challenge for the sector".

"What we are trying to do is to get those key carve outs. Obviously, drinks is key in terms of tariffs and the viability of it and I know they have a very strong ask for zero-for-zero and it’s one which the government is really trying to work on," Mr Burke said.

"We're trying to work on those key sectors, like drinks, like pharma, all those that are so important for the strategic success of our economy," he added.

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