February 2, 2026: China to halve tariffs on Scotch whisky and other news
UK-China deal, SWA Manifesto, new distillery in Ardrishaig, EU-India FTA, agave crisis in Guanajuato, Rinaldi 1957 keeps Don Papa in Italy, Starward Whisky, Australia spirits tax and more...
The Spirits Post is an international press review about the spirits industry brought to you by Eugenia Torelli, an Italian spirits journalist and judge. If this newsletter was forwarded to you by a friend, you can subscribe here to receive it directly in your inbox:
Hello everyone!
Here is a round-up of the key headlines to kick off the week. While the most significant developments involve major international trade agreements, we also have some interesting distillery stories, including notable news from Australia.
Enjoy.
UK and Scotland
China to halve tariffs on Scotch whisky following Xi-Starmer talks
Following a high-level meeting between UK Prime Minister Keir Starmer and Chinese President Xi Jinping, China has agreed to slash its import duties on Scotch whisky from 10% to 5%.
The UK press secretary noted that this move could be worth up to £250 million to the industry. It is a major win for the Scotch Whisky Association (SWA), which has long lobbied for better access to the Chinese market.
You can read the report via Reuters (no author mentioned):
China agrees to halve tariffs on UK whisky after Xi-Starmer talks
Read the official SWA statement here:
SWA launches 2026 manifesto: “Whisky makes Scotland”
Let’s stay in Scotland for a while, where the SWA has released its updated Scotch whisky Manifesto, featuring new production data by region. While visitor figures currently reflect 2024 data, the document remains a vital look at the industry’s economic footprint.
You can find it here:
2026 Manifesto | Whisky isn’t just made in Scotland: It Makes Scotland
New distillery proposed for former oil depot in Ardrishaig
A planning application submitted by Organic Architects could see a former oil depot on the Ardrishaig pier in Argyll transformed into a new distillery. The project includes tasting rooms and a visitor centre on a site that was once home to the Glenfyne Distillery, closed in 1937.
Article by Alasdair Ferguson in The National:
Plans to turn old oil depot on loch shores into whisky distillery revealed
International trade
EU and India conclude landmark free trade agreement
On 27 January, the EU and India signed a historic Free Trade Agreement (FTA). Under the deal, India is expected to reduce or eliminate import duties on over 96.6% of EU goods. In return, the EU will reduce tariffs on 99.5% of Indian exports over the next seven years.
The FTA has been welcomed as a start for a broader bi-lateral collaboration between the countries and SpiritsEurope has hailed the agreement as a “true game changer” for the sector, particularly given the long-standing high tariffs on European spirits in the Indian market.
You can read the official communication by the EU here:
SpiritsEurope’s official press release here:
SpiritsEUROPE hails the EU-India FTA as a true game changer for the eu spirits sector
And here you have the statement from the Irish Whiskey Association (IWA):
Irish Whiskey Association welcomes announcement of EU-India free trade agreement
Mexico
Agave producers abandon fields in Guanajuato amid profitability crisis
The Secretary of Agriculture, Marisol Suárez Correa, has raised the alarm in Guanajuato, where many farmers are abandoning agave cultivation due to a lack of profitability. The Ministry is currently studying agricultural alternatives to help stabilise the sector as the “agave crisis” continues to impact local growers.
News by Alfonsina Ávila in NW Noticias Guanajuato:
Crisis del agave en Guanajuato: productores dejan tierras por falta de rentabilidad
Italy
Diageo renews distribution deal with Rinaldi 1857 for Don Papa rum
The multinational giant Diageo has confirmed it will continue its partnership with Rinaldi 1957 for the distribution of Don Papa rum in Italy. The announcement puts an end to recent rumours suggesting a shift in Diageo’s Italian strategy for the brand.
News in Food Service (no author mentioned):
Australia
Starward founder buys back business as Diageo steps out
Starward Whisky founder David Vitale has successfully bought back full ownership of his business. The move follows Diageo’s decision to exit its investment in the company after 11 years as part of a wider scale-back of its accelerator programmes.
News by Cody Profaca in Drinks Trade:
Starward back in ownership of founder David Vitale as Diageo halts accelerator program
Australia spirits tax climbs to $108 per litre
The spirits tax in Australia has risen by $2.01, bringing the total to $107.99 per litre of alcohol.
The industry body Spirits & Cocktails Australia has criticised the move, warning that the increase further widens the tax gap between different liquor categories.
Full details in Cody Profaca’s article for Drinks Trade:
That’s all for today. I hope this round-up helps you navigate the busy week ahead!
Don’t forget to leave your comments or send me messages on topics you find interesting.