Labour’s plans to curb alcohol advertising risks jeopardising Sir Keir Starmer’s newly-signed trade deal with the US, it has emerged.
The American drinks industry is said to believe the introduction of advertising restrictions would constitute a non-tariff barrier to trade.
There are fears of a ‘full-blown trade war’ should US President Donald Trump’s administration take retaliatory action in response to the proposals.
According to The Telegraph, Rufino Hurtado – the senior trade representative at the US mission to the EU – will raise the matter during US-UK talks this week.
The US could then trigger formal dispute mechanisms if the advertising curbs -condemned as ‘nanny statism’ by critics – are confirmed as part of Labour’s ’10-Year Health Plan’, the newspaper reported.
Officials at the Department of Health and Social Care (DHSC) are currently finalising the ’10-Year Health Plan’, which is expected to be announced on Thursday.
DHSC has ruled out a complete ban on alcohol advertising but confirmed it is looking at ‘partial restrictions’ similar to those on the advertising of unhealthy food.
In 2024, the Government announced plans to ban TV adverts for junk food before 9pm from October, but this has since been delayed until the New Year.
The US drinks industry – including the owner of Jack Daniel’s whiskey – is said to have already begun lobbying Business and Trade Secretary Jonathan Reynolds about the alcohol proposals.
Ireland is rethinking its own plans to introduce mandatory health warnings on alcohol next year, due to fears about the impact of US tariffs on the drinks industry.
US trade negotiators are expected to argue that UK advertising curbs would breach commitments made under Sir Keir’s trade deal not to introduce non-tariff barriers.
A source close to US-UK trade talks said: ‘If Ireland backing down on labels was a skirmish, this would be a full-blown trade war.
‘Washington views this kind of policy as protectionism in disguise, and they will retaliate.’
The US drinks industry fears advertising curbs would harm their ability to launch and market new brands in Britain, giving UK firms an unfair advantage.
Sir Keir’s trade deal with Mr Trump, which came into force yesterday, cuts US tariffs for UK car manufacturers and the aerospace sector.
The PM and US president finalised the deal for those sectors at the recent G7 summit, but levies on steel have been left standing at 25 per cent rather than falling to zero as originally agreed.
Talks are ongoing to secure 0 per cent tariffs on core steel products from the UK.
Tory MP Andrew Griffith, the shadow business secretary, said: ‘Labour’s plan to ban alcohol advertising isn’t just anti-business, it’s anti-trade and anti-free speech.
‘America is one of our closest allies and largest economic partners.
‘Threatening a new UK-US trade deal within weeks of signing it is recklessly short-sighted.
‘The Government should be focused on promoting responsible consumption, not ripping sponsorship out of sport and erecting trade barriers.’