An agreement that removes trade barriers made between the EU and Canada has been welcomed by the Scotch whisky industry.

Earlier this month, the  EU-Canada Comprehensive, Economic and Trade Agreement (CETA) was formally ratified by the UK.

The deal, which removes 98% of duties companies have to pay at Canadian customs, has been applied provisionally since September 2017.

Since 2012, there has been a 91% increase in Scotch whisky exports to Canada through Scottish ports.

It aims to ensure there are fewer internal trading restrictions for the industry.

Significant trading barriers for the wider food and drink industry are expected to be lifted by CETA.

International Trade Secretary Dr Liam Fox said: “CETA is one of the most ambitious free trade agreements and British businesses and consumers are already feeling the benefits since the agreement came provisionally into force last year.

“The agreement eliminates almost every tariff on goods traded between our two countries and we will transition it into UK law after we leave the European Union so that businesses can continue to enjoy as free and frictionless trade as possible.

“Scotland plays a crucial role in our trade with Canada, with over £360 million of trade between our two countries going through Scottish ports last year, and there is great potential for this to increase even further.”

Sarah Dickson, of the Scotch Whisky Association, said: “Open markets matter to the Scotch Whisky industry.

“We hope the CETA committee will remove barriers to trade that will help to promote fair competition and further boost our exports to Canada, which grew 13% in 2017 to over £83 million.

“If the deal continues to apply to the UK it should be good for the entire UK economy and export success stories like Scotch Whisky, which supports over 40,000 jobs across the UK and accounts for 20% of all UK food and drink exports.”

UK Prime Minister Theresa May and Canadian Prime Minister Justin Trudeau  both indicated they would seek to seamlessly transition CETA into a bilateral deal to allow frictionless trade after the UK leaves the European Union.