U.S. Pushes for Greater Access to India’s Market for Kentucky Bourbon

Washington–U.S. officials have indicated they will seek to expand sales of Kentucky bourbon in India as Washington pushes for greater access to overseas markets for American agricultural and manufactured products.

The issue was raised during a joint congressional hearing on commercial diplomacy involving the State and Commerce departments. Republican Rep. Andy Barr of Kentucky asked whether the Commerce Department could help promote American whiskey in India.

Barr said he had recently discussed the matter with U.S. Ambassador to India Sergio Gor and Indian Commerce and Industry Minister Piyush Goyal.

“India is a whiskey drinking market,” Barr said before contrasting Scotch whisky with American bourbon.

“I did have to tell the Minister of Commerce in India that remember that Scotch whiskey is the drink of the occupier the Imperial whiskey and Kentucky bourbon is the drink of freedom so we want them to import more Kentucky bourbon whiskey and maybe less of that Scotch whiskey,” he said.

David Fogel, Assistant Secretary of Commerce for Global Markets and Director General of the U.S. and Foreign Commercial Service, said promoting American products overseas was part of the agency’s regular work.

“Yeah, absolutely so two things here one is that’s what we do every day,” Fogel said.

He said the U.S. Commercial Service works directly with American companies, including Kentucky bourbon producers, to help them enter foreign markets or increase existing sales.

“Our team on the ground, the Foreign Commercial Service, will then meet with the relevant ministries and advocate to bring those non-tariff barriers down,” Fogel said.

India also came up during a broader discussion about trade negotiations and challenges facing U.S. agricultural exporters.

A California lawmaker said American producers of rice, walnuts and almonds were under pressure from foreign subsidies and trade barriers. He said the United States was working on new trade agreements with India, Japan and other countries.

Caleb Orr, Assistant Secretary of State for Economic, Energy and Business Affairs, said President Donald Trump was focused on addressing barriers affecting American farmers in major overseas markets.

“Our economic officers are focused on changing some of these policies that put up barriers to American agricultural exports,” Orr said.

The hearing examined whether the State and Commerce departments were coordinating effectively to advance U.S. commercial interests overseas. Lawmakers raised concerns about staffing shortages, overlapping responsibilities and the limited number of Foreign Commercial Service officers.

Fogel said the service had a presence in markets representing about 95% of global gross domestic product. He said the Commerce Department had identified artificial intelligence, energy, critical minerals and U.S. manufacturing as priority sectors.

India is one of the world’s largest alcoholic beverage markets, but imported spirits are subject to central import duties as well as state-level taxes and regulations. Access for foreign alcoholic beverage producers has long been an issue in India’s trade negotiations with major partners.

Bourbon is a distinctly American whiskey most closely associated with Kentucky. Under U.S. standards, it must be produced in the United States from a grain mixture containing at least 51% corn and aged in new charred oak containers. (Source: IANS)