US beer tax cuts will save UK British exporters £7.2m

By Nikkie Sutton

- Last updated on GMT

Overseas help: the UK exports 3.4m barrels of beer to the US each year
Overseas help: the UK exports 3.4m barrels of beer to the US each year

Related tags: International trade

Significant cuts in US beer tax will save UK beer exporters millions of pounds and this has been welcomed by the British Beer & Pub Association (BBPA) and the Society for Independent Brewers (SIBA).

Taxes are being reduced by $2 per US barrel for all brewers exporting to the US from the UK, saving British beer exporters £7.2m.

The UK exports 3.4m barrels to the US each year and it is the UK’s largest export market.

Growth target

Through a new beer export strategy recently launched by the BBPA, the industry has set itself a target of achieving £100m growth over the next five years.

BBPA chief executive Brigid Simmonds said: “I welcome this tax reduction in the US, which will provide opportunities for British brewers to pursue markets in the US.

“US small brewers still enjoy tax advantages over UK brewers. When they export to the UK, they receive all the advantages of the UK’s small breweries’ relief, yet the federal discounts offered in the US are not available to the UK’s small brewers.

“This is something we tried hard to correct through the US/EU negotiations on transatlantic trade and investment partnership, and would like to see tackled under any forthcoming US/UK trade deal."

Achievement

She added: “We must however, congratulate the US Beer Institute for all its work to achieve reductions in beer taxation and for its co-operation with us to help UK beer exports.”

The Society of Independent Brewers (SIBA) chief executive Mike Benner said: “SIBA would like to congratulation the Brewers Association for its achievement in securing tax relief for America’s independent craft brewers.

“The positive effects of small brewers relief are still evident in the UK some 15 years after it was enacted and it is excellent to see government, on both sides of the Atlantic, supporting independent craft brewers.”

Related topics: Beer

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