Tariffs introduced on Scotch whisky are being suspended after a resolution to an international trade row between the UK and American.
The Scotch whisky industry was struck by a 25% tariff on single malt by former US President Donald Trump, after the two countries imposed tariffs in the trade dispute.
The row is thought to have lost the Scotch whisky industry more than £600m in exports.
The UK and US were involved in a long-running trade row over subsidies given to Airbus and Boeing.
Other UK industries including cashmere and construction vehicles were also affected.
Chief executive of the Scotch Whisky Association Karen Betts said: ‘This is very good news for Scotch whisky. The past two years have been extremely damaging for our industry, with the loss of over £600m in exports to the United States caused by a 25% tariff on single malt Scotch whisky imposed as a result of the long-running dispute between US and European aircraft manufacturers.
‘This deal removes the threat of tariffs being reimposed on Scotch whisky next month and enables distillers to focus on recovering exports to our largest and most valuable export market.
‘Today’s agreement is a culmination of many months of intensive negotiations and we’re grateful to Liz Truss, International Trade Secretary, and Katherine Tai, US Trade Representative, and their teams for their hard work.
‘Given, however, that this deal suspends tariffs rather than fully resolving the underlying dispute, what’s critical now is that the governments and aerospace companies on both sides stick to their commitments and work with one another constructively.
‘I want to note too that American whiskies remain subject to tariffs on entry into the UK and EU as a result of a separate dispute on steel and aluminium, and we hope these tariffs can also be resolved quickly.’