WHISKY is ‘facing big challenges’ in Scotland, according to David Mundell.

The MP was left ‘frustrated’ over the important industry and employer as he lead a debate at Westminster.

Mr Mundell pressed for an early lifting of a damaging 25 per cent tariff on the import of Scotch to the United States, the largest export market.

He said: “Unfortunately, whisky is the innocent victim of an EU/USA trade dispute over historic aircraft manufacturing subsidies.

“The industry has been put under considerable pressure with Scotch whisky and Scotch whisky liquers losing US market share because of the inflated price tag.

“Last year I raised an urgent question in Parliament ahead of the tariff’s imposition and the Prime Minister later raised the issue with President Trump and many colleagues lobbied US Ambassador Woody Johnson.

“But, regrettably, the imposition of the tariff, which the USA is legally entitled to impose because of a World Trade Organisation (WTO) ruling, went ahead with damaging consequences.

“The WTO decided that until the aircraft industry subsidies were repaid and their impact eliminated, both the EU and USA were entitled to impose retaliatory tariffs on each other’s exports to encourage compliance.

“Rather than imposing tariffs on the aircraft industry, the USA has opted to take two-thirds of the outstanding UK tariff liabilities from Scotch whisky exports.

Prior to the tariff being introduced, the Scotch whisky industry’s exports to the USA were worth in the region of £1 billion annually, whilst when you add exports to the rest of the world reaches £4.7 billion.

“I want to see extra support given to the whisky industry during this difficult time and will continue to press at every level for the whisky and other tariffs to be removed.”