Keir Starmer: Why our deal with China matters to Scotland


The Prime Minister says the tariff deal with China will be a major boost for Scottish whisky
Next month, families across China will mark the Lunar New Year by exchanging gifts. Traditionally, those gifts have been simple, symbolic gestures of goodwill. You might receive fruit, tea, cookies – or, if you’re lucky, a little bit of money.
Increasingly, however, there is something new on the table: Scotch whisky. That’s a relatively recent addition. But it’s not an accident.
Over the past decade, demand for Scotch has surged in China - so much so that it is now Scotland’s tenth-largest export market for whisky. It speaks to the quality of what Scotland produces that today you can find a glass of Johnnie Walker in Guangzhou almost as easily as in Glasgow.
That was front of my mind as I travelled to China this week - just as it was when I went to Mumbai last year. The huge potential of businesses in Scotland. And the responsibility of government to back them to cut through barriers, open markets, and create the space for further growth.
And so, as with my trip to India, I’m bringing something back for Scottish industry: from Monday, our new deal with China will see tariffs on whisky halved from 10 per cent to 5 per cent.
That builds on the work we’ve already been doing around the world to back businesses in Scotland. With India, we’ve already slashed tariffs on whisky, with the potential to increase trade by around £1 billion a year and support around 1,000 new jobs.
With the EU, we’ve strengthened the relationships that Scottish exporters rely on - cutting red tape and giving businesses the confidence to invest and grow. And with the US, negotiations continue. Not through photo opportunities or angry letters from the sidelines. But by getting on with the steady diplomacy that actually delivers for Scottish families.
Different partners. Same purpose. Scotland at the heart.
These strengthened relationships will make whisky cheaper to export and better placed to expand in the world’s largest economies. Our latest deal with China alone is expected to provide Scottish industry with a £250 million boost over the next five years.
And that matters because of the benefits it will bring families right here.
Because when Scotland sells more abroad, more money flows back home. That supports better-paid, more secure jobs. It gives businesses the confidence to invest. And it helps build the kind of economy that will ease the pressure the cost-of-living is putting on families across the country.
That is what this is really about: this Labour government pulling every lever – at home and abroad – to make day-to-day life a little easier for working people. I’m told that those gifts exchanged at New Year are meant to wish prosperity and good fortune for the year ahead. These deals are about making sure that’s not left to chance. They’re about strength at home. Engagement abroad. And delivery for Scotland at every opportunity.
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