Diageo Advocates for Tougher Rules of Origin in Trade

Diageo, the global leader in spirits, has proposed stricter rules of origin in U.S. trade agreements to replace tariffs. A letter to the U.S. Trade Representative suggests sourcing goods domestically or through key partners to strengthen U.S. supply chains and support economic policies while avoiding heavy tariffs.

Spirits industry giant Diageo has recommended that the U.S. government implement stricter rules of origin in trade agreements as an alternative to tariffs. This suggestion was disclosed in a letter sent to the U.S. Trade Representative.

Diageo, involved in global trade discussions under President Trump's administration, argues that updating rules of origin could align with Trump's goals and benefit the spirits industry. Such rules would prioritize goods, like alcoholic beverages, whose ingredients are sourced substantially within the U.S. or from key trading partners, according to Alden Schacher, Diageo North America's vice president for government relations.

Diageo's proposal also includes ensuring that alcohol production occurs in the U.S. or territories of key trade partners, such as Mexico and Canada. With potential tariffs threatening profits, the company seeks to highlight its contribution to the U.S. economy and labor market to avert such economic measures.

(With inputs from agencies.)