UK-Australia free trade deal: Australian wool industry’s links to British suit making

A Savile Row tailor says a free trade deal between Canberra and London would be beneficial to the textile trade in both Australia and Great Britain.

Shepherds tend to sheep in Savile Row, London's premier tailoring street, in central London, back in October 2010. The street was turned into an urban farm in support of The Prince of Wales' Campaign for Wool. (AP Photo/Lefteris Pitarakis)

A CHRISTMAS Eve deal between London and Brussels has left Australian wool with more questions than answers, as UK-Australia free trade talks continue.

Last month’s deal enables Australia to split its existing European Union tariff-rate quotas between the EU and UK, based on where proportions of trade were directed over a three-year period.

The stop-gap measure will remain in place until the Australian Government finalises free trade deals with both the European Union and Great Britain, negotiations which started shortly after the latter voted in a 2016 referendum to leave the trading bloc.

Australian Wool Innovation consultant Peter Ackroyd said the days of direct Australia to UK wool trade were long gone, with the production journey weaving its way through nations both in and outside the Eurozone.

“While reasonable quantities of top quality Australian greasy wool are exported to the UK for conversion into yarn and fabric for the world’s finest luxury clothing brands, many spinners and weavers import scoured wool, combed tops and worsted spun yarns from a variety of countries,” he said.

“(Countries of origin include) China, Vietnam, India, Mauritius and Indonesia outside the European Union and from Bulgaria, Italy, Portugal and Poland within the EU.

“Yarn from outside the EU attracts an import duty of just under 5 per cent.”

Mr Ackroyd said the pre-Christmas deal between UK and EU allayed fears from British premium weavers that with a no-deal Brexit, yarn imported from the EU would be subject to the same duty.

“However, UK weavers sourcing worsted yarn from outside the EU will face country of origin barriers on finished fabrics exported to the EU,” he said.

Australian Merino fabrics woven and finished in Yorkshire are particularly sought after by leading fashion brands in UK, Italy, France, Japan, USA and increasingly China. The tag “Made in England” is seen as a unique quality assurance for premium priced products.”

Independent tailors Richard Anderson are based on Savile Row and its management see the commercial potential of new deal outside the EU.

Richard Anderson director Brian Lishak told The Weekly Times that the break from the Eurozone would rekindle interest in his home country’s locally sourced clothing.

“Almost all the wool suiting material we use are sourced from Australia because they are the finest,” he said.

“Some 50 per cent of our trade is international and we have many Australian customers. I believe our departure from the EU will be beneficial to us and the UK-Australia Free Trade Deal will be an important factor in our buying and selling internationally.”

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