India–United Kingdom: free trade agreement talks disagreement over scotch whisky

Free trade agreement talks between India and the United Kingdom have reportedly stumbled over disagreements between makers of Indian whisky and Scotch whisky.

The United Kingdom is reportedly seeking a reduction of import duties on Scotch from 150% to 75%, then falling to 30% over three years, as well as a requirement that products be aged at least three years to be classified as whisky. The Indian producers reportedly seek a reduction in those import duties to only 50% over ten years.

Due to differences in climate, a barrel of Scottish spirits reportedly loses only approximately 1-1.5% of its content per year, while a barrel in India loses as much as 10-12 percent per year, causing Indian producers to oppose the three-year requirement.