As we await the full impact of the Brexit, Australia considers one major drawback and future opportunities when it comes to export, with the potential of a Australia-UK FTA and Australian agribusiness and wine sectors coming out on top.
While news of Brexit will slow down an FTA with the EU, Australia’s agri and wine sectors, currently experiencing high tariffs in the EU will be looking at a big opportunity to reap the benefits of a potential bilateral agreement with the UK.
“Following an announcement last November, signalling Australia's intention to begin the process of moving toward an Australia-EU FTA, news of the Brexit will no doubt slow down these proceedings.
“However, Brexit provides the opportunity for Australia to negotiate a more focussed and potentially more beneficial FTA with the UK. The UK would potentially look to Australia with keen interest to optimise our access to Asia through our existing agreements such as ChAFTA and JAEPA, KAFTA.
“As we’ve seen from developing the TPPA, when it comes to developing an FTA with the EU, a trading block inevitably has compromised ambition in an attempt to acknowledge the particular circumstances of all member countries. This in itself takes time and no doubt will be an even lengthier process following the Brexit.
“The opportunity to pick up on a bilateral agreement with the UK need only account for the circumstances of the two parties involved, thus providing more targeted outcomes to begin trade opportunities with the UK, particularly in areas such as agriculture, food and beverage sectors, said Jacky Millership, Growth Advisory Partner, Grant Thornton Australia.
Predicting the FTA with the EU will be significantly slowed down following the Brexit announcement, Richard Gruppetta, Head of Asia Advisory, Grant Thornton Australia believes a shift in focus from DFAT is on the cards.
“The idea of an EU FTA will be slowed down just as Australia, together with DFAT, takes into account what it will all mean if Scotland vetos the Brexit. We might expect DFAT to shift its focus to closing an India FTA in the meantime and better leverage the current ChAFTA conditions with a newly elected Government post our July election,” said Mr Gruppetta.
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