Canadians to cut alcohol levies in boost for Irish whiskey
Prices of Irish whiskey will be cut in two Canadian provinces as a result of the Ceta trade deal
Canadians will be able to buy cheaper Irish booze from this month.
Two Canadian provinces have pledged to slash local alcohol levies on European imports after an audit under the EU-Canada trade deal.
The deal has been in place provisionally since 2017 but has yet to be formally ratified by Ireland and 11 other EU countries.
According to the Irish Whiskey Association (IWA), Ontario will reduce levies by 42pc from this week, while Quebec is to cut its ‘cost-of-service-differential’ by 16.4pc at the end of May.
“These reductions have been very welcome in that they have allowed Irish whiskey, particularly premium Irish whiskey products, to be priced more competitively,” said William Lavelle, head of the Irish Whiskey Association.
The EU-Canada trade deal, known as the Comprehensive Economic and Trade Agreement (Ceta), is currently being examined by the Oireachtas EU affairs committee.
It has split the Green Party, with TD Patrick Costello asking the High Court last month whether the deal requires a referendum because of a controversial chapter introducing an investor court system.
Critics fear it would lead to companies being able to sue the government for loss of earnings caused by new climate or tax laws.
Sinn Féin also opposes the deal, with Louth TD Ruairí Ó Murchú saying this week that there is “an element of madness” in Ireland signing up to the investor court system, when Canada and the US have rejected a similar scheme in their Nafta deal with Mexico.
The Oireachtas began its scrutiny of Ceta this week, with the EU’s former director-general for trade, David O’Sullivan, telling the EU affairs committee it would be “dangerous” to delay it any further. “There is a kind of general credibility issue here,” he said. “This is not something that we would want to see become a habit.”
Mr Lavelle also urged TDs to ratify Ceta in order to eliminate remaining provincial taxes on alcohol in Canada.
Ireland’s trade in goods with Canada has gone up by 27pc since the deal was signed, Mr O’Sullivan said, particularly for pharmaceutical and food and drink exports.
Sales of Irish whiskey have increased by 44pc since 2017, the IWA said.
The Oireachtas EU affairs committee will hear from lawyers and academics on CETA next week.
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