US eyes India market for Kentucky Bourbon

Washington: US officials have signalled a push to expand Kentucky Bourbon sales in India as Washington seeks greater market access for American agricultural and manufactured products.

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

Barr said he recently discussed the issue with US Ambassador to India Sergio Gor and India’s Commerce and Industry Minister Piyush Goyal.

“India is a whiskey drinking market,” Barr said, before drawing a colourful distinction between Scotch and 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 US and Foreign Commercial Service, said promoting such products 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 US Commercial Service works directly with American businesses, including Kentucky bourbon producers, to help them enter overseas markets or expand 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 was also mentioned during a wider discussion about trade negotiations and obstacles facing American agricultural exporters.

A California lawmaker told the hearing that US producers of rice, walnuts and almonds were facing pressure from foreign subsidies and trade barriers. He said Washington 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 confronting 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 in advancing US commercial interests overseas. Lawmakers raised concerns about staffing shortages, overlapping responsibilities and the limited presence of Foreign Commercial Service officers.

Fogel said the service was represented in markets accounting for roughly 95 per cent of global gross domestic product. He said Commerce had identified artificial intelligence, energy, critical minerals and US manufacturing as priority sectors.

India is among the world’s largest markets for alcoholic beverages, although its spirits sector is governed by a combination of central import duties and state-level taxation and regulation. Market access for imported alcoholic drinks has long figured in India’s trade negotiations with major partners.

Bourbon is a distinctive American whiskey associated most closely with Kentucky. Under US standards, it must be made in the United States from a grain mixture containing at least 51 per cent corn and aged in new charred oak containers.

IANS