Golden opportunities for exporters in new free trade deal after Brexit
Tasmanian exporters will be keeping a close eye on Britain’s withdrawal from the EU with a potential new free trade deal to open up a range of new possibilities.
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BREXIT will be a big opportunity for Tasmania to “seize more shelf space” in high-end UK stores if Australia can secure a free trade deal.
Tasmania’s annual exports to the UK have plunged from $62.7 million to just $9.1 million over the past decade.
But Premier Will Hodgman and federal Trade Minister Simon Birmingham see a chance for the state to turn that around if British Prime Minister Boris Johnson can negotiate a deal to leave the European Union before the October 31 deadline.
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Wine makers, distilleries, and boutique markets such as honey or truffles could be among the big winners.
“Tassie’s outstanding attribute is its quality in high-value niche products that, in markets across the UK and Europe, can absolutely capture people’s attention because it’s coming from one of the most pristine environments in the world, with some of the highest quality produce that is also incredibly exclusive in how much of it is available,” Mr Birmingham told the Mercury.
“I think if we can ease or eliminate some of the tariff and quota barriers that exist for Tasmanian food, wine and cheeses into the UK and Europe, there will be big opportunities for Tassie to seize more shelf space on the stores of exclusive high-end supermarkets and retailers who want to show some of the world’s best products off.”
British Trade Secretary Liz Truss has flagged lower tariffs on alcohol as a potential outcome from a trade deal with Australia, which she believes could be done in “months rather than years”.
Tasmania last year exported about $900,000 worth of alcohol to the UK.
It is still a significantly larger market for the state’s alcohol exports than China, which is Tasmania’s biggest overall trading partner.
China took just $320,000 worth of Tasmanian alcohol last year.
Mr Hodgman will lead a trade delegation to the UK and Europe next month — after the Brexit deadline — to seek further opportunities for local businesses.
“Our Tasmanian Trade Strategy 2019-2025, launched earlier this year, identifies the UK and the EU as key market opportunities for advanced manufacturing and defence, food and agribusiness, science and technology, and tourism sectors,” he said.
Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said there was “no doubt” a trade deal would be beneficial but there were “huge and emerging opportunities closer to home”.
“The great issue that our exporters always face is the tyranny of distance to Europe,” he said.
“Our primary focus is closer countries like Malaysia or China, which is now over $1 billion worth of trade each year for Tasmania.”
Cider makers’ cheers to trade possibilities
A TOP Tasmanian cider maker expects to reap the rewards of a cross-national deal which could open up greater opportunities for Australian farmers.
If Brexit goes ahead, Britain expects to create a free trade agreement with Australia.
The deal would likely benefit Australian agricultural products exported to the UK which have long been met with European Union tariffs.
Willie Smith’s head cider maker Tim Jones said the apple growing company had already been exploring an export opportunity in the UK but the free trade agreement “might be what we need to get it across the line”.
“We started looking at exports in the last couple months and we are looking at the UK very closely,” Mr Jones said.
“So this may be the catalyst that we need.”
In Tasmania for a research visit yesterday, Tom Oliver, of England’s Oliver Cider and Perry, said there was a demand for premium cider in the UK.
“For us in the UK, there is a real appetite for cider with a strong identity and great taste values,” he said.
“The more good cider we can get, the better it is, and Australia is very much an untapped market for us in that sense, so we would really welcome great cider from Tasmania.”
Mr Oliver said he hadn’t considered Australia as a target market for his product but said future opportunities could arise.
“There is more mass-market UK cider available in Australia but the more premium cider hasn’t shown up yet. As with all trade agreements you hope it’s a two-way thing.”
– JAMES KITTO
Originally published as Golden opportunities for exporters in new free trade deal after Brexit