As British MPs prepare to vote to secure a deal to exit the EU, SA stands ready to seize big trade opportunities

SA could profit from a “reset” with Britain if Australia can secure a new free trade deal. Our winemakers and distillers could be first in line.

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Brexit could be a “reset moment” for South Australia’s trade with the United Kingdom if Australia can secure a free trade deal.

The state’s exports to the UK have dropped from $763 million to $456 million in the past decade.

But Premier Steven Marshall, federal Trade Minister Simon Birmingham and the state’s peak business group see big opportunities if British Prime Minister Boris Johnson can negotiate a deal to leave the European Union before the October 31 deadline.

Winemakers and distilleries in particular could benefit.

“SA has lived through the surge of wine exports to the UK that happened in recent decades, and managed to do that, notwithstanding the tariffs that the EU required to be imposed on Australian wine,” Mr Birmingham told The Advertiser. “Our ambition would be to get those tariffs eliminated and to make sure that Australian wine is at least as competitive as French or European wines, if not more.

“I wouldn’t want to overstate that it’s an easy market to just walk back into and surge sales that are also highly profitable,” he said.   “But if we can eliminate tariffs, that creates the potential for Australian wine to be sold at margins that are more sustainable for Australian winemakers.”

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”.

SA’s alcohol exports to the UK dropped to just $257 million last year, less than half the $624 million of 10 years ago.

China is now the state’s biggest export market for alcohol.

It was worth $779 million last year. That’s almost half the state’s $1.9 billion alcohol exports in total.

Mr Marshall said defence, space and cyber were some of the state’s biggest growth opportunities for business with the UK. “In the past, the UK has loved our South Australian wines, they’ve loved our Coopers beer, they’ve loved our RM Williams and some of our iconic brands.

“They love some of the unique experiences you can have in SA, especially around our beaches, wineries, desert and cultural programs.

“But I think the great opportunity for us going forward is to focus on defence, space and cyber and also the renewable energy sector.”

Business SA chief executive Martin Haese said Brexit could be a “reset moment” for SA’s trade with the UK, if the British Parliament approved the latest proposal. Agricultural producers would benefit and there could also be opportunities for the information technology sector, research and development, medical devices and health.

The “very competitive” Australian dollar could also make buying Australian goods and services “very attractive for certain markets”, he said.

SA winemaker and distiller Brendan Carter, who operates Applewood distillery and other brands, was sceptical that a deal would help smaller producers in the short term, even though the UK was one of his company’s primary markets.

“If anything, a favourable deal might give us market access and a degree of preferential treatment in-market – but the deal would need to be astronomically favourable to counterbalance our non-competitiveness due to geographic isolation, high labour, rent and energy costs,” he said.

Originally published as As British MPs prepare to vote to secure a deal to exit the EU, SA stands ready to seize big trade opportunities