How SA will win from free trade deal with Britain: Former High Commissioner to UK Alexander Downer
Former top UK diplomat Alexander Downer says South Australia will win big from a free trade deal with Britain, with official talks set to begin as early as this week.
SA News
Don't miss out on the headlines from SA News. Followed categories will be added to My News.
- Wall Street’s rally snuffed out over virus, ASX falls
- Latest subscriber-exclusive giveaways, specials and prizes
A free trade deal with Britain could inject millions of dollars into South Australia's economy and boost the state's defence and manufacturing industries, Alexander Downer says.
Better visas for Australians to live and work in the United Kingdom, and vice versa, are also likely to come out of a post-Brexit free trade deal, the former High Commissioner to the UK says. SA dairy, beef and sheep farmers as well as fruit and vegetable growers would be other big winners, Mr Downer told the Sunday Mail as the two countries prepare to launch formal trade negotiations as early as this week.
But it was unlikely they would launch a free movement agreement, like Australia's decades-old arrangement with New Zealand which allows citizens to live and work in the other country without a visa.
"I think what's more likely is we will get easier access to the UK for people who are professionals, academics, students, business people and so on," Mr Downer said. "We're not likely to agree to [full freedom of movement] because there are 66 million people in the UK and we couldn't realistically say we'll just open Australia's borders to 66 million people," he said.
British Prime Minister Boris Johnson has previously backed the idea but Prime Minister Scott Morrison has not been open to the proposal. Mr Downer said a free trade deal would help expand SA's exports to Britain, which were worth about $412 million last year. Dairy was a big Australian export to the UK before it became part of the European Union and would likely do well again, along with fruit and vegetables.
"There are potentially some manufacturers who could do quite well. The EU has an 18 per cent tariff on footwear so things like RM Williams boots [could benefit],” he said.
SA's defence industry would also benefit from closer trade ties – although Mr Downer noted there were already strong ties with British defence company BAE Systems contracted to build Australia's nine Hunter Class frigates in Adelaide.
"Where once Australia had a very close relationship with the British defence industry, that has faded a lot in recent decades, and I think we have a very good opportunity to start to rebuild that," he said.
"The other big benefit coming out of a free trade deal with the UK will be investment … it would give us much more scope for investor partnerships with British companies."
The United Kingdom is already the second biggest investor in Australia, pumping $686 billion into the economy in 2019, miles ahead of the $78.2 billion from China but behind the $983.7 billion from the US.
And while the UK has already started post-Brexit trade talks with the US and Japan, Mr Downer said the British government would be “dead keen” to lock in a deal with Australia as soon as possible. “They will want, in terms of trade agreements, to get runs on the board,” he said. “I think they see a free-trade agreement with Australia as relatively easy to conclude, compared to some other parts of the world.”