Free trade agreement talks between India and the United Kingdom have reportedly stumbled over disagreements between makers of Indian whisky and Scotch whisky.

The United Kingdom is reportedly seeking a reduction of import duties on Scotch from 150% to 75%, then falling to 30% over three years, as well as a requirement that products be aged at least three years to be classified as whisky. The Indian producers reportedly seek a reduction in those import duties to only 50% over ten years.

Due to differences in climate, a barrel of Scottish spirits reportedly loses only approximately 1-1.5% of its content per year, while a barrel in India loses as much as 10-12 percent per year, causing Indian producers to oppose the three-year requirement.

 

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