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As experts continue to mull the impact of the UK's exit from the European Union, Brexit could offer importing opportunities for Australia's wine industry.

The process of moving towards an Australia-UK FTA with the EU has been slowed down by the news of Brexit, but there appears to be room for Australia to negotiate a more focused and beneficial FTA with the UK, according to the local wine industry.

The UK would potentially look to Australia with keen interest to optimise its access to Asia through existing agreements such as ChAFTA and JAEPA, KAFTA, with Australian winemakers benefiting.

Britain is the largest export destination for Australian wine by volume, and industry body Wine Australia believes the Brexit fallout could make it less expensive to send local wine there.

The Winemakers Federation of Australia and Wine Australia said they would work closely with the government to reach favourable trading terms.

A less positive impact of the UK's exit from the European Union could be a rise in price of raw materials and imports, according to Innova Market Insights, as well as changes to tariffs and quotas.

“Tariffs and quotas will not change immediately, but any negotiation is highly unlikely to bring better terms than previously as a member of the EU,” Innova analyst Heather Johnston said.

The UK's Food and Drink Federation (FDF) director general Ian Wright said a March poll revealed 70 per cent of its members supported Britain in remaining in the EU.

“It's inevitable, in light of those results, that the majority of FDF members will regard this as a disappointing result for the food and drink industry."

British Retail Consortium CEO Helen Dickinson said keeping the cost of goods down for consumers and providing certainty for businesses “must be at the heart of the government’s plans for life outside of the EU.”

The fallout from Brexit may also be felt in the product development space, according to Innova Market Insights' Lu Ann Williams.

“Other EU markets are the leading destination for UK food products and uncertainty about potential tariffs returning could impact exports,” she said.

“But the UK has traditionally also been a leading beacon for new product innovation in the food industry, often driving trends in convenience and premiumisation through its highly developed on-the-go market.

“With more isolationism as a result of Brexit and reduced exports, it’s possible we will see less creativity spread through to the continent too.”

Market researcher Euromonitor International, which examined the potential impact of Brexit on consumer packaged foods in a recent report, said declining sales would affect discretionary purchases such as biscuits, snack bars, and chocolate confectionery.

As a result, UK firms such as Walkers shortbread and Scottish potato chip company Mackie's Chips are looking to boost distribution in the US.

 

 

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