In September 2024, the World Trade Organization hosted its annual Public Forum – the organization’s largest outreach event focused on the future of global trade. As part of the programme, the World Spirits Alliance (WSA) participated in a panel discussion: “From Zero to Hero: How Sectoral ‘Zero for Zero’ Spirits Tariff Deals Support Inclusive and Sustainable Trade”
Panelists Included:
- Dmitry Grozoubinski, Executive Director, Geneva Trade Platform (Moderator)
- Helen Medina, CEO, World Spirits Alliance
- Lucian Cernat, Head of Global Regulatory Cooperation and International Procurement Negotiations, DG Trade, European Commission
- Franck Renaudin, Director of Artisan Cooperages & International Sales, Independent Stave Company
- Ben Rake, Counsellor, UK Mission Geneva
The “Zero for Zero” Agreement’s Role for the Spirits Industry
The “Zero for Zero” agreement was launched during the Uruguay Round of the WTO negotiations when a group of countries – including the US, EU, Japan, and Canada – agreed to eliminate tariffs on certain goods, including brown spirits like whisky and cognac. This agreement enabled spirits producers to compete on a level playing field, without artificial price distortions from tariffs.
Helen Medina emphasized that this agreement has fueled innovation, boosted exports, and created inclusive job opportunities—particularly in rural and economically fragile areas. The spirits sector today contributes $730 billion in gross value added to global GDP and supports over 36 million jobs worldwide.
Key Discussion Points
Trade Disruption Hurts Everyone: From whisky to rum, global spirits production relies on complex cross-border supply chains. As Franck Renaudin explained, barrels used in spirits aging may pass through multiple countries over their lifespan. Tariffs and trade disputes disrupt this flow, impacting not only large producers but also thousands of small cooperages and rural workers.
Tariffs and Negative Health Outcomes: Helen Medina noted that high tariffs don’t reduce alcohol misuse—they often push consumers toward the illicit market, which is more dangerous and less regulated. Instead of curbing harmful use, these policies can lead to greater public health risks.
Mini-Deals: A Way Forward: Lucian Cernat and Ben Rake both discussed the role of sector-specific “mini-deals” as pragmatic solutions amid stalled global trade negotiations. These targeted agreements—like the spirits-focused “Zero for Zero”—can drive progress where broader FTAs are difficult to achieve.
To ensure the global spirits industry continues to flourish, WSA urges WTO members to:
- Continue the commitment of the WTO member signatories to the “Zero for Zero” agreement and address issues related to non-tariff barriers to trade (TBT).
- Expand participation by encouraging more WTO members to join the “Zero for Zero” deal recognizing the positive economic impact it has on our industry; its supply chain partners and for consumers.
- Avoid using spirits as retaliation in unrelated trade disputes.
Continuing the Conversation
The “Zero for Zero” agreement is a model of how targeted trade policies can drive positive change in the global economy, benefitting businesses, workers and consumers. The WSA will continue to engage with WTO members and global partners to protect this progress – and champion for sustainable and inclusive trade practices for the spirits industry.
