The UK government said Prime Minister Keir Starmer has secured a proposed Scotch whisky tariff cut in China that is “worth £250 million to the UK economy over the next five years.”

It said Starmer secured “a significant win for Scotland’s iconic whisky industry, with China agreeing to cut tariffs on Scotch whisky from 10 per cent to 5 per cent.”

It said the deal was signed during Starmer’s visit to Beijing.

Scotch accounts for 22% of the UK’s total food and drink exports. About 41,000 jobs are supported by the whisky industry in Scotland alone, with a further tens of thousands across the supply chain.

“China is currently Scotch whisky’s 10th largest market by value, and this tariff reduction will help Scottish distillers compete more effectively in one of the world’s fastest-growing consumer markets,” said the UK government.

“This latest success follows the landmark UK-India trade deal, which slashed Indian import tariffs on Scotch and is set to increase sales to India by up to £1 billion a year. That deal alone is expected to grow the Scottish economy by £190 million annually.”

Scotch Whisky Association CEO Mark Kent said: “China is a priority growth market for many Scotch Whisky producers, which in recent decades has developed into a knowledgeable and premium focused market with a strong appreciation of Scotch.

“The proposed tariff reduction from 10% to 5% has the potential to re-energise exports of Scotch to this important market.

“We are very grateful to the Prime Minister and officials on both sides for this welcome development and look forward to working with the UK Government on the rapid implementation of the tariff reduction, as part of wider work to improve competitiveness in all Scotch Whisky’s global markets.”

Starmer said: “Our whisky distilleries are the jewel in Scotland’s crown. Having already slashed tariffs on whisky exports to India, we’re now doing the same with China – proof that our pragmatic, hard-headed international engagement brings benefits at home.”