The Herald reported on Wednesday that Argentina awarded scotch whisky a geographical indication (GI) status in the country, and that the liquor is the first foreign product within the country to achieve this kind of protection. A protected GI status ensures the legitimacy of any product with the Scotch whisky label and prohibits other whiskies not made in Scotland from taking the designation.
“Scotch Whisky is the first foreign product to receive special protection in Argentina, which is a testament to not only the strength of our trade ties with Argentina, but the prestige and reach of Scotland’s world-renowned product,” said Trade Minister Douglas Alexander in a statement according to the Herald.
This protection signifies another win for the industry after India and the UK reached a trade deal where duties on Scotch imported to the country would be slashed from 150% to 75%. According to Global Drinks Intel, that rate is projected to fall to 40% within a decade.
“In just six months, we’ve driven a breakthrough trade agreement with India while securing legal protections from dozens of beloved British products across the globe – from the markets of São Paulo to the streets of Tokyo,” said Minister for Food Security and Rural Affairs Daniel Zeichner in a statement. “This government won’t stop here. We’re unlocking doors for UK exporters worldwide, putting British products on more shelves and tables – delivering real economic growth as part of our Plan for Change.”
The outlet reported that Argentina’s awarding the spirits category its own protected GI was the result of the work between the UK Government and the Scotch Whisky Association (SWA). A spokesperson from the SWA reported that the legislation took “many years” to come to fruition, according to Global Data.
The move marks a bright spot during a volatile time for the industry, especially concerning recent issues surrounding tariffs and inflation. The SWA reported in February that exports fell by 3.7% in value in comparison to 2023. Chief Executive of the Scotch Whisky Association Mark Kent claimed that 2024 was a “challenging year.”
“At home, distillers are being stretched to a breaking point, as consumers bear the brunt of a 14% increase on the tax on every bottle of scotch whisky in the last 18 months alone. The cumulative effect of inflationary impacts on input costs such as cereals, energy and shipping, and the increased tax and regulatory costs, including the substantial cost of EPR coming later this year are being fed through to consumers when they are tightening their belts.”
Whether or not the designation will lead to increased sales volumes within Argentina remains unclear, but it is unquestionably a win for the category.
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