NEW:
Government/ industry sources confirm US-UK “mini deal” negotiations, revealed by US Trade Rep Lighthizer to BBC last month, failed to progress last week, after concerns about Airbus backing. Means Scottish whisky/cashmere tariffs continue...will be picked up with Biden admin
Government/ industry sources confirm US-UK “mini deal” negotiations, revealed by US Trade Rep Lighthizer to BBC last month, failed to progress last week, after concerns about Airbus backing. Means Scottish whisky/cashmere tariffs continue...will be picked up with Biden admin
UK Govt source: “Ultimately we came close to resolving an intractable 16 year dispute[airbus-boeing], but didn’t quite get there. Any deal must be balanced and work for the whole UK and all of UK industry... understand pain of affected industry”... (ie whisky etc)
Net result is that Scotch whisky/ cashmere tariffs remain in place at least for a couple of months while new Biden Trade Rep Tai is confirmed, but then it’s a matter for their policy.
Lowering UK bourbon tariffs in separate steel dispute also in the mix here
Lowering UK bourbon tariffs in separate steel dispute also in the mix here
Also told that the events in Washington DC were a factor too in trying to close a deal so late in the Trump term. It definitely was quite close - but interesting example of trade freedom requiring choices, in this case immediately prioritising whisky industry or Airbus...
Many had expected a reduction in US whisky tariffs for the UK to be an important rhetorical weapon for the Government in Scottish elections esp with Brexit-sceptics in electorate - used as an example of post Brexit trade independence benefits - but not yet materialised.
As I reported here - aerospace sources were furious when the tariffs on Boeing were unilaterally paused, saying departure from EU position broke promises to keep to it made by previous Business sec - that argument appears to have won for now:
https://twitter.com/faisalislam/status/1336634588865630210?s=20
Background to the story here from my US TRade Rep interview... bbc.co.uk/news/business-…
Full Lighthizer interview here where he probably gives the most detailed public defence of what Trumpian economics was trying to achieve as regards working class Americans - is here: bbc.co.uk/programmes/m00…
Scottish Whisky association @ScotchWhiskySWA say there is “deep disappointment” across industry that they are “paying the price for an aerospace dispute that has nothing to do with us” and that has caused mounting losses of £450m plus... 
Full story: bbc.com/news/business-…
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