Farrell accuses Morrison Government of causing $1b UK Trade Deal failure

South Australia’s wine makers are among the Aussie businesses taking a big hit because of a critical government failure, an SA senator says.

Australian businesses, including in South Australia, have lost billions of dollars in work after a landmark British trade deal failed to become law before the federal election.

The country’s historic United Kingdom free-trade agreement, signed in Adelaide in December last year, scrapped export taxes, business red tape and worker restrictions.

But the deal, hailed as Australia’s “most comprehensive and ambitious”, is not yet official after its paperwork was not ratified before the May 21 poll.

Turmoil over the leadership of British Prime Minister Boris Johnson has also delayed it.

Officials say under Commonwealth law the UK agreement – forecast to boost trade by more than $18 billion a year – requires new legislation to lock it into law. An Indian deal also requires similar checks.

Trade Minister, SA Labor Senator Don Farrell, blamed the Morrison government for costing firms “billions of dollars in lost trade opportunities”.

President of the Adelaide Hills wine Region Association Alex Trescowthick. Picture: Keryn Stevens

He said vital checks, including from a Joint Standing Committee on Treaties, were not made before federal parliament dissolved on March 31, meaning it had to “start from scratch”. “They had ample opportunity to complete it in a timely manner,” he said.

“It was just another sign of … from a government too slow in every respect.”

While the deal’s terms stay, he warned of a six month delay from an original July 1 start.

Former Liberal Trade Minister Dan Tehan said Labor had rejected his request to fast-track the treaty process.

He said the Opposition would back streamlining laws.

“Get the legislation into the parliament and let’s get it done,” he said. “The sooner we can do that, the better.”

Under the UK deal, most Australia’s exporters would benefit from tariff relief – an import tax on goods or services – on $9.2bn worth of products.

Australian consumers would also save more than $200m a year on cheaper British cars, alcohol, make-up or chocolate, farmers would access 65 million more customers, working holiday rules would ease and firms given priority to government contracts.

SA Senator Don Farrell. Picture: Glenn Campbell

Official figures show the UK export market is valued at $394 million to the state’s economy with at least 136 companies having a British office.

RedHeads Wine general manager, Alex Trescowthick, said UK drinkers loved SA chardonnay, shiraz and cabernet. He said three quarters of his wine went to Britain.

“A deal means producers pay less tax,’ he said.

State Trade Minister Nick Champion, said it was “disappointing” result.

“That decision was a lost opportunity for access to a growing export market, which is important to South Australian businesses who were hit hard by rising tariffs in China,” he said.

A British High Commission spokeswoman said ratification was under way but “this process has not been affected by the UK Conservative Party leadership contest”. Both governments “see it as mutually beneficial” to their economies.