Brexit impact on SA likely

The UK’s economic landscape will change significantly on March 29, when the Brexit separation agreement comes into force. Unless, of course, the decision is delayed, which is possible.

The flag of the European Union and the British national flags are flown on poles during a demonstration by remain in the EU outside spporters the Palace of Westminster in London. Photo: AP/Alastair Grant

THE UK’s economic landscape will change significantly on March 29, when the Brexit separation agreement comes into force. Unless, of course, the decision is delayed, which is possible.

While many in the UK have their heads in the sand over the potential trade implications and how it will affect their businesses, livelihoods and even travel plans, there are many Australians who also think Brexit won’t affect them.

We need to start thinking about how the UK’s ugly divorce from the European Union might affect South Australian businesses. In 2017, the UK was South Australia’s ninth largest export destination, exporting $368 million of goods and services.

However, economists and businesses have said Brexit may affect which export markets they target. On a positive note, tariffs could fall, making it easier for South Australian businesses to export beef, sheep meat, dairy and other agricultural products.

Businesses need to understand the challenges and opportunities they will face over the coming weeks and months.

The Federal Government wants businesses to consider the volume of their UK and EU trade, and any potential supply chain impacts, along with how a “no-deal” scenario could affect them, including residency, education and employment.

If you’re concerned, it might be worth considering legal advice or engaging a migration agent such as Business SA’s services, a customs broker, freight forwarder or logistics provider to help you prepare for changes.

The Federal Government is working to ensure risks to Australian businesses are addressed. However, the separation will be costly – particularly for UK residents – where taxes and costs could rise. The split will see the UK paying the EU roughly $72 billion, which is a massive hit to the British economy.

It is estimated that Brexit could have an economic impact of up to 10 per cent on world markets.

Flights to the UK might also become more expensive due to security controls, immigration changes and higher taxes.

But it will be easier for Australians to apply for work visas from December 2020 onwards. Working visa changes mean Australians will only need to be “skilled” instead of “highly skilled” to work in the UK.

The UK has been one of South Australia’s closest allies. Don’t be complacent. Don’t assume this won’t impact you. Stay informed about the volatility it will bring to one of our most important investment and trade partners, the UK, and one of the world’s largest market places, the EU.

Nigel McBride is chief executive of Business SA.