Thailand has signed a trade deal with the UK designed to boost trade and investment between the two nations and open the country up to British businesses, and Scotch is set to benefit.
UK trade minister Douglas Alexander has signed the pact alongside Thai commerce minister Pichai Naripthaphan in Bangkok on 18 September.
The UK and Thailand also recently also made it much simpler for Thai companies to import UK food and drink. Businesses can now submit conformity documentation by email instead of the time-consuming process of getting paperwork physically stamped by the British Embassy. Removing this barrier will be worth around £40m-£70m to UK businesses over five years, the UK government has said.
Thailand is the second-biggest economy in Southeast Asia and trade between the UK and Thailand is already worth £5.9 billion a year. The Thai economy is rapidly growing and its middle class is expected to more than double to almost 14 million by 2030, creating huge opportunities for UK businesses to tap into.
Scotch producers are ready to jump on the opportunity. Debra Crew, Diageo’s chief executive, the UK-based multinational which owns Johnnie Walker, Talisker and The Singleton, said the company hoped the partnership “will be the first step towards resolving costly trade barriers, such as those affecting Scotch whisky”.
She said of the trade deal: “ASEAN [Association of Southeast Asian Nations] is one of the world’s most vibrant and dynamic regions, full of opportunity for Scotch whisky. We warmly welcome the UK’s participation in the Asian Economic Dialogue and the new Enhanced Trade Partnership with Thailand which will boost trade and investment in this important region.
Value exports of Scotch whisky in the first half of 2024 fell by 18% compared to the same period last year. India proved to be the only silver lining for the sector, recording growth of 17.3% in the first half of 2024 compared with the previous year.
With exports down, Thailand could provide renewed hope for Scottish brands.
The UK is in the process of discussing a trade deal with India, which currently imposes a 150% tariff on imports of Scotch whisky.
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