Brexit may give Australian winemaking a trading advantage
The United Kingdom's recent referendum result in favour of leaving the European Union has been causing a stir in business and the media all over the world. Commentators in a variety of industries speculating on the effects 'Brexit' and, while the forecasts vary, Australian winemaking is one sector that could potentially reap the benefits of the shift.
With the possibility of easier and more affordable trade with the UK, winemaking may experience a boost in the future, which could generate an increase in wine industry employment opportunities for local workers.
By volume, Britain is the largest importer of Australian wine in the world.
Britain a major player in Australian wine exports
At present, the United Kingdom imports the largest volume of Australian wine in the world, in fact making up around a third of total Australian wine exports. A 2015 report by Wine Australia values the exports at around $376 million, which is actually a 2 per cent increase in value compared to the previous year.
The report shows that in 2015, Australia exported a massive 247 million litres of the alcoholic beverage, most of which was made up by bulk wine. However, bottled wine saw a growth in popularity for that year, rising by 8.4 per cent to reach 39 million litres.
It is apparent how vital British custom is to Australian winemaking, driving economic movement in both the sector itself and the country as a whole. With Brexit expected to cause a shift, industry professions are watching carefully to see how exports will be affected.
Brexit's impact on Aussie wine
In the past, import duties for bringing wine into the UK have been determined by the European Union but, with Britain opting out, it is possible that it will get a lot cheaper to export there in the near future.
Western Australian wine producer Larry Cherubino told ABC News that he is optimistic about a shift to the tariff, but does retain some reservations.
"We're hoping that all these changes augur well for the Australian wine industry in terms of there being a more level playing field between us and the rest of Europe, but we really don't know what the outcome is going to be," he said.
Nevertheless, if a beneficial trade agreement does indeed take shape between Britain and Australia, wine exports could experience significant growth. Regardless of the outcome, it is important for those looking for jobs in the wine industry to keep an eye out for upcoming developments.