Case study: NI whiskey manufacturer

Whiskey produced on the island of Ireland benefits from protection under the EU’s Geographical Indications scheme, and this will continue to be the case for whiskey produced in Northern Ireland after the transition period for as long as the Northern Ireland Protocol remains in force. Such goods will need to meet rules of origin established by UK FTAs.

Geographical indications are protected names or descriptions on a product which identify it as originating from and having a quality or reputation attributable to a particular region or place. Geographical indication status protects those products from imitation and the name cannot be used to describe a similar product. We recognise the strong regional and cultural importance and identity of GIs which resonates amongst UK consumers. We know that people want to support their local producers, local culture and local economies and people identify with the products that are made where they live.

Rules of origin are also important to whiskey manufacturers in NI. The preferential rules of origin that apply to a given product are agreed between partner countries and included in their FTA. Rules of origin can therefore vary depending on what the country of import will be. Some examples of what these rules might look like include:

• Whiskey manufactured from goods other than those contained within chapter 22.07 and 22.08 (undenatured ethyl alcohol of a strength >80% and <80% respectively) can be considered as originating in the UK (UK-South Korea FTA)
• Whiskey wherein the value of non-originating ingredients does not exceed 15% of the value of the finished good (UK-Morocco FTA)

Provided that Northern Irish whiskey meets the product specific rule (PSR) under the applicable FTA, it will be considered originating in the UK. Under continuity agreements signed to date, we have also agreed with partner countries to treat EU content as also originating when incorporated in goods traded with one another provided sufficient processing rules are also met.

The UK has signed trade continuity agreements with 48 countries, as of 31 January 2020, to replicate the effects of existing EU trade agreements, ensuring continuity for UK businesses following the transition period. This includes agreements with South Korea, Switzerland, and the Southern Africa Customs Union and Mozambique (SACUM) trade bloc, and overall accounts for £110 billion of UK trade in 2018.

Beverage exports to South Korea and Switzerland were worth £3.2m and £0.9m respectively in 2019. Exports to the EU were worth £233.7m, and to the US were worth £65m.

Source: The statistics used here do not estimate the value or impact of the trade agreements themselves. They provide, for context, the overall value of the UK’s trade with countries covered by these agreements. Data covers the period 2018; Office for National Statistics (ONS) statistics on UK total trade: all countries, non-seasonally adjusted October to December