The forthcoming free trade agreement (FTA) between Australia and the United Kingdom is seen to open up expansion opportunities for Australian grape growers and winemakers.
On Tuesday, the two countries struck an in-principle agreement over a free trade deal which represents a “key milestone on the path towards a truly liberalising agreement that will see more wine lovers in the UK enjoying Australia’s finest drops,” according to the industry group Australian Grape & Wine.
AGW Chief Executive Tony Battaglene said the UK is an “incredibly important” market for Australia’s grape and wine businesses, while British consumers are “some of the most enthusiastic” Australian wine patrons.
In the year ended March 2021, Australia exported AU$461 million (around US$355 million) worth of wines to the UK, rising by a third over the previous year. That accounts for over 17% of the country’s total wine exports in the year.
More Australian wines might be seen in supermarkets and hospitality venues in the UK following the FTA announcement, the AGW said.
While both countries have yet to finalise the agreement, Battaglene said it hopes the deal could “address a range of costs and barriers Australian wine exporters currently face in the UK.” In particular, the removal of tariffs is critical for the sector, he claimed.
“Other areas we are hoping to see progress on, include simpler certification requirements, and improvements in our ability to further process and package Australian wines in the UK market, which will drive innovation, create jobs here and in the UK, and reduce our carbon footprint,” the group’s official added.
The AGW said it is extending its support to the Australian government in crafting the final technical details of the FTA.
