US suspends tariffs on single malt Scotch whisky

The US has agreed to suspend tariffs imposed on UK goods including single malt whiskies that were imposed in retaliation over subsidies given to the aircraft maker Airbus.

The suspension also covers items like cheese, pork, cashmere and machinery.

The tariffs will be suspended for a period of four months.

On 1 January, the UK had already dropped its own tariffs on some US goods put in place over a related dispute about US subsidies to Boeing.

The Scotch Whisky Association called the suspension "fabulous news".

Boss Karen Betts said: "The tariff on single malt Scotch whisky exports to the US has been doing real damage to Scotch whisky in the 16 months it has been in place, with exports to the US falling by 35%, costing companies over half a billion pounds.

"So today, everyone in our industry - from small companies to large - is breathing a sigh of relief."

However, she said the UK and US would still need to negotiate a long-term settlement to the aerospace dispute.

In a joint statement, the UK and the US said that the suspension would "ease the burden on industry and take a bold, joint step towards resolving the longest running disputes at the World Trade Organization".

The two countries added that it would also "allow time to focus on negotiating a balanced settlement to the disputes, and begin seriously addressing the challenges posed by new entrants to the civil aviation market from non-market economies, such as China".

Action in the long running dispute began in 2004, when the US filed a case at the World Trade Organization challenging European loans to help Airbus develop aircraft, and stopped a 1992 agreement covering government support for the two top aircraft manufacturers.