WSTA explores Australia Brexit talks, as minister talks of ‘cheap Aussie wine’

The WSTA has embarked on preliminary talks with the national industry body for Australia’s winemakers to explore post-Brexit trade as the country’s trade minister admits that cheap Australian wine would be “a fringe benefit” of a new trade deal.

The WSTA told db it had embarked on “useful” talks with the Winemakers’ Federation of Australia (WFA) after chief executive Miles Beale visited Autralia and New Zealand last week to explore how the UK and Australia can trade post-Brexit in a way that is more “mutually beneficial” than the current EU arrangement.

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It follows his comments last month that it was “vital” the WSTA influences “a carefully devised government strategy to ensure that the right trade deals are struck for our complex, global market quickly and according to the right priorities.”

However Beale declined to answer the question as to what will happen with UK-Australian wine imports before a deal is struck – which is unlikely to be before 2019 at the very earliest – saying the issue would be discussed at the WSTA’s conference next week, when former Minister for Trade and Minister for Europe Lord Maude of Horsham is the key-note speaker. However he agreed that an early deal with Australia would mean minimum disruption to UK and the wine and spirits businesses.

The UK is not only Australia’s largest destination for wine by volume but is also the country’s third biggest export to the UK, behind lead and gold, and as such, is likely to be high on the Australian agenda.

Speaking on the Today programme yesterday Australian trade minister Steven Ciobo admitted that “cheap Australian wine is a good fringe benefit if a free trade agreement (FTA) if we were are able to put one in place”.

This would arise from the automatic removal of EU import duties, the common customers tariff, when the UK exits the EU. Wine Australia previously estimated cost Australian wine more than Aus$42m on exports to the UK in 2015 saying their removal would “level the playing field”.

However Ciobo argued that the biggest benefit of an FTA was reducing compliance costs and lessening of red tape for businesses as well as the greater opportunity for “proper engagement”.

This was echoed by a spokesman from Wine Australia who told db the effect of Brexit on the technical and logistical conditions under which Australian wine is exported to the UK was of “equal importance” to an FTA.

“Currently, a bilateral trade agreement on wine between Australia and the EU governs these conditions and it will be necessary to ensure arrangements post-Brexit are at least as favourable as those currently prevailing under that treaty.”

The development of an FTA between Australia and the UK would be welcomed by the Australian wine sector, it said, as any FTA negotiated between Australia and the EU will no longer apply to Australian wine exported to the UK once the UK leaves the customs union. But they said it was “far too early to be discussing details of either an Australia–UK FTA or a bilateral agreement specific to wine traded between our respective countries”.

“We do, however, see considerable opportunity in the UK market. Wine Australia will be working closely with the wine community and the Australian Government to ensure that Australia is best placed to take advantage of those opportunities in a post-Brexit environment.”

“In the meantime, we will continue to bring innovative Australian wines that surprise and delight to the attention of the British trade, media and influencers,” it said.

Wines of Australia is holding a Artisans of Australian Wine tasting on 20 September featuring 25 winemakers which is says showcases “a new iteration of Australian wine brilliance”.