What Britain leaving the EU means for Australia

An uncertain few months are on the cards for Britain after its government voted down Prime Minister Theresa May’s latest Brexit deal. This is how Australia is affected by the UK leaving Europe.

• UK politicians have utterly failed the British public
• Britain’s Brexit dilemma: The options

An uncertain few months are on the cards for Britain after its government voted down the latest Brexit plan and the flow on effects are expected to be felt in Australia.

Trade Minister Simon Birmingham is determined to keep trade as steady as possible with negotiations ongoing with the EU and the UK to keep trade ticking along.

“These are quite extraordinary and uncertain times,” he told ABC Radio National.

Anti-Brexit supporters demonstrate outside the UK Houses of Parliament days before the vote. Picture: Tolga Akmen

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British MPs voted 432-202 against Prime Minister Theresa May’s deal for the UK to leave the EU on Wednesday morning Australian time, delivering her government a crushing blow.

The date set in law for Brexit, March 29, now looms with Britain deeply divided on if the country should leave Europe or how to do so.

Here is what Brexit actually means for Australia:

Exports

Australia’s two way trade with the UK was worth $26.6 billion in 2017, and experts believe if the UK leaves the European Union then our trade will increase.

The Department of Foreign Affairs and Trade are already having preliminary discussions with the UK over a new free trade agreement, which former trade minister Steven Ciobo said “will create new opportunities for Australian businesses; driving exports, economic growth and creating new jobs.”

Theresa May’s deal was handed a crushing defeat 432-202. Picture: AFP Photo

Visas

It will be easier for Australians to apply for work visas in the UK from December 2020 onwards — giving plenty more Aussies a chance to live and work in the UK.

A UK government white paper released late last year showed Australians will no longer need to be “highly skilled” to work in the UK — they just need to be “skilled”.

This means nurses and agricultural workers could move to the UK for jobs.

Buying UK property and setting up businesses

If Australia forges its own free trade agreement with the UK then experts say regulation between the two companies will be reduced. Professor Simon Tormey from the department of government and international relations at Sydney University said there is currently a lot of regulation when dealing with the UK — which falls under the same rules as the EU.

“There is a lot of regulation, a lot of red tape and lot of health and safety rules which come with that,” he said.

“What the Brexit people of the UK want to say is we will be a much lighter touch regime than the European Union,” he said. This would make it easier for Australians to buy property in the UK, or set up a business.

Trade Minister Simon Birmingham said Australia is attempting to keep trade steady. Picture: Mick Tsikas

Australian shares

The panic over Australian shares dropping has not happened, with ASX 200 share market staying flat at 5826.1 points. Meanwhile the Aussie dollar is trading at 72.01 US cents, down from 72.14 US cents on Tuesday.

“The market response to the morning’s events has so far been a classic case of “buy the rumour, sell the fact”, it seems,” IG Markets analyst Kyle Rodda said.

“Wall Street stocks fell initially, only to recover their losses into the market’s close.”