Brexit presents massive trade opportunities for Australia

As Europe undergoes significant change following the Brexit vote, one thing is clear — the opportunity for Australia.

Prime Minister Malcolm Turnbull greets his British counterpart Theresa May at the recent G20 in Hangzhou, China. Picture: Lyndon Mechielsen

As Europe undergoes significant economic and geopolitical change following Britain’s decision to leave the European Union one thing is clear — the opportunity for Australia.

Brexit presents many challenges, much uncertainty, and the consequences are complex, however, the opportunities that will flow are much greater.

It is these opportunities that Australia is focused on seizing.

Britain is looking for new post-Brexit trading partners and Australia is willing and raring to go. We make an attractive trading partner; we’re an open, innovative and pro-trade country with a stable, reliable and prosperous economy.

And we’re ready to do business.

The Turnbull government is committed to striking a free-trade agreement with the UK when the time is right.

Preliminary discussions are already taking place and prime ministers Malcolm Turnbull and Theresa May have said they want a free-trade agreement in place soon after Britain leaves the EU.

Building on that, I met with key economic ministers, including the Secretary of State for International Trade, Liam Fox, and Lord Price, Minister of State for Trade Policy, in London last week.

The message was clear; our old friends want to forge a new, stronger relationship.

Secretary Fox and I agreed to establish a bilateral Trade Working Group that will focus on scoping out the parameters of a future ambitious and comprehensive Australia-UK Free Trade Agreement.

Australia’s relationship with the UK has always been strong and will only get stronger as we look to a future free trade agreement.

Today the UK is our second-largest foreign investor and our seventh largest trading partner. Now we have the opportunity to build on this relationship in a way that will benefit both countries.

But first, Britain must go through the process of formally exiting the EU.

While we wait for the UK to be in a position to negotiate, Australia is already working towards a comprehensive, high-quality free trade agreement with the European Union. This was our goal before Brexit and it remains a goal today.

While the reasons for a trade deal with the UK are obvious — the benefits for an Australia-EU Free Trade Agreement are also clear. The EU, as a bloc, is Australia’s second-largest trading partner.

We have not enhanced our access to the EU market for more than 20 years, so our exports are currently at a competitive disadvantage. We want to level the playing field.

In Brussels last week I addressed members of the European Parliament, alongside Foreign Minister Julie Bishop, to build support for an Australia-EU Free Trade Agreement. In negotiations with the EU, we will promote stronger trade in goods and services, and two-way investment.

An Australia-EU FTA would build on the strong economic links already in place.

The EU as it currently stands is Australia’s largest source of foreign investment, creating jobs for thousands of Australians.

Some of this investment is European businesses using Australia as a launching pad into our region.

Dutch cold storage company NewCold has just established its Asia-Pacific headquarters in Melbourne, creating 127 new fulltime jobs and bringing new technology to Victoria.

There is enormous scope for others to follow as Australia becomes even more deeply enmeshed in the Asia-Pacific region.

For the UK and EU, and many of our other trade partners, Australia is, and can be, the gateway to Asia and its growing middle class.

The trifecta of FTAs the Coalition concluded with China, Japan and Korea have locked in best-ever treatment in a range of services, as well as delivering tariff reductions that give Aussie exporters a competitive edge in these huge, dynamic markets.

We’re currently at the negotiating table again to strike a Regional Comprehensive Economic Partnership which brings together 16 countries that account for almost half of the world’s population, 31 per cent of global GDP and more than a quarter of the world’s exports.

And we are committed to an early conclusion of negotiations for a free-trade agreement with Indonesia.

All this makes Australia an ideal entry point into Asia for UK and EU business.

Australia wants to build a deeper economic relationship with the UK and EU through more and freer trade.

While being mutually beneficial, securing new free trade deals will also send an important signal globally about the benefits of trade liberalisation.

Australia has enjoyed 25 years of continuous economic growth by opening up to the world, the best performance of any advanced economy in recent decades according to the IMF.

The Turnbull government is pursuing an ambitious trade agenda, and new trade agreements, to ensure our economy keeps growing and continues creating jobs.

Steven Ciobo is the Minister for Trade, Tourism and Investment.