Rural Payments and Services

Commenting on the Scottish Food & Drink elements of the HMRC Export Statistics for Q1-Q3 2020, Rural Economy Secretary Fergus Ewing said:

“The latest statistics show just how damaging the global coronavirus (COVID) pandemic has been for overseas sales from Scottish food and drink exporters. But it’s not the only issue that the sector has had to deal with, Brexit has caused huge uncertainty and is posing a further risk of significant harm to our food and drink businesses. With just days to go until the end of the transition period, we are still no clearer on what the landscape for exporters will look like.

“On top of this, the US imposed tariffs have meant that for over a year, Scottish products, including single malt Scotch whisky, cheese and cashmere clothing have faced tariffs of 25% as part of a long-running dispute between the US and the EU over subsidies for aircraft manufacturers. These iconic Scottish products have no connection to the aerospace industry, but are suffering as a result. The damaging impact of these tariffs is being felt across Scotland and is increasing.

“With all of this in mind we are continuing to work closely with the sector to support it through this economic crisis and also to encourage more domestic retail markets. Last month, we launched the £5 million Food and Drink Recovery Plan to help the sector with its recovery from COVID and prepare for Brexit. This funding will help Scotland Food & Drink and industry partners to come together to work on fairer, greener and sustainable solutions to the challenges that lie ahead. Scotland is home to much of the world’s greatest produce and we must do all we can to protect and promote it.”