Brexit: What British failure to make a deal with EU would mean for Australians and our exports

Think the political farce that continues to unravel on the other side of the world simply makes for good viewing and will have no impact Down Under? Think again. But not all of it will be bad.

AUSSIES travelling to the UK will be caught up in airport queues delayed for hours if the British government is forced out of the European Union without a deal.

Australian diplomats have been working furiously behind the scenes to prepare a trade deal with the UK, in the event of either a soft Brexit or no-deal Brexit scenario.

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Some international trade law experts have predicted Australia’s agricultural sector could even benefit from a no-deal Brexit scenario, at the expense of British farmers.

Diplomats are aiming to have many agreements simply lifted from the EU trade arrangements to a new one with Britain – with wine being one of the nation’s biggest exports expected to be protected.

Trade Minister Simon Birmingham said it was an “extraordinary and uncertain time”, but a trade working group had been set up with the UK to ensure as smooth a transition as possible.

“We’ve also been working very closely to ensure that existing agreements that are in place with the EU that could be replicated with the UK are ready to do so, such as wine access agreements, mutual recognition of qualifications agreements,” he told the ABC.

Australia’s agricultural sector could benefit from a no-deal Brexit scenario, at the expense of British farmers. Picture: Andy Rogers

The UK is the second largest importer of wine in the world, and Australia is it’s second largest source of wine behind Italy by volume.

According to the Department of Foreign Affairs, Australia exports $384.4 million of wine to the UK each year – 18 per cent of our global exports.

Prime Minister Scott Morrison said the direct economic impact of Brexit on Australia would be limited.

“Australians should feel reassured that a safe and steady pair of hands has been managing what is a very uncertain and unstable set of arrangements,” he said.

Departmental figures say Australian skilled and working visa arrangements with the UK are unlikely to be impacted, while the most noticeable difference ordinary Australians may face would be longer processing times at customs at Heathrow.

University of Queensland international trade expert Anthony Cassimatis said there were potential advantages for Australian farmers, as in a no-deal situation Britain could lose EU protectionist agricultural trade measures.

“It could be devastating for British farmers, who will have to compete more with Australian and New Zealand beef and lamb exports,” he said.