Federvini-Discus: “prevent the reintroduction of duties on spirits in transatlantic trade”

The sector of spirits in the US and Italy supports about 2 million of workplaces. From 1997 to 2018, without duties, their trade between the US and EU increased by almost 450% arriving to generate a value of about 200 billion dollars. But, the obligation of duties during the first Trump presidency between 2018 and 2021, triggered by controversies external to the sector, such as those about aluminum, steel, and Airbus-Boeing controversy, brought significant damages: the exports of American whiskey to EU decreased by 20%, while the exports of Italian spirits to the USA, first intercontinental end market underwent a decrease of 41%. Today, Federvini, the Italian Federation of Industrial Producers, Exporters and Importers of Wines, Spirits, Syrups, Vinegar, and Discus - Distilled Spirits Council of the United States, the associations of reference of Italy, and of the USA, launch a new appeal to prevent the reintroduction of duties on spirits in transatlantic trade, in a press conference to Associazione della Sala Stampa Estera (Association of the Foreign Press Office) in Italy, in Rome, waiting for the decisions of the President of the USA Donald Trump about the duties, which he promised more times in campaign before being back to the White House.
Spirits are symbols of traditions, cultures, and quality with many productions protected by Geographical Indications, and deeply rooted in the territories and local communities. Moreover, the industry supports a wide range of satellite activities representing an important fly-wheel of economic growth, in the US, and in Europe.
“The American and Italian spirit industries are deeply interconnected, and maintaining a reasonable and mutual trade without duties through the Atlantic is fundamental to ensure that our sectors, which are coping with uncertain and demanding markets, won’t experience further economic pressures” - declared Chris Swonger, president and Ceo Discus – we appreciate the strict bond between President Trump and prime minister Meloni, and we encourage them to collaborate to find a common ground between the Usa, and Eu, and prevent the obligation of duties on distilled spirits”.
“Our industry has already suffered heavily due to duties which hit the industry unfairly. It is essential that producers and institutions collaborate at an international level to protect a supply chain representing an important economic and cultural heritage – underlined Micaela Pallini, president of Federvini - collaborating means preventing obstacles and fostering shared and sustainable growth. The sector of spirits is a global excellence between the Usa and Italy: each commercial barrier risks to have impacts on the productive system, and on workers, in addition to consumers due to the unavoidable inflation effect. Federvini hopes that there won’t be any new duties imposed by the USA, and that Eu, in turn, won’t reactivate duties on the imports of whiskeys by the Usa”.
If the suspension of rebalancing duties in the controversy about steel and aluminum won’t be prolonged, as a matter of fact, starting from 2015, April, 1, the imports of Usa whiskey to Eu will be subjected to duties of 50% again, vanishing the recover, +60%, registered between 2021 and 2023 following the suspension of duties. If a new obligation of duties on the import to the Usa of spirits produced in Europe won’t be avoided, the effects will have a heavy resonance on the entire European productive and distribution supply chain. It is sufficient to consider that the Usa represent the first intercontinental end market for Italian spirits: 13% of the total export for a value, in the first 10 months of January-October 2023, equal to almost 190 million euros growing by 7.4% compared to the same period of the previous year.