Brexit is a chance to "simplify" international trade agreements, says Taylors Wines MD

By Jo Gilbert

Published: 23 September, 2016

At last week's WSTA conference, CEO Mile Beale announced the association is already starting to lay the groundwork for post-Brexit trade agreements by entering into discussions with counterparts in Australia and New Zealand.

One of the people he spoke to was Taylors Wines' managing director Mitchell Taylor, who is also a director of the Winemakers Federation of Australia.

Speaking to Harpers on the subject of imports, Taylor outlined what he hoped would happen, including his hope for a "simplified" version of the existing trade agreements between Australia and the EU.

"The Australian wine industry has a very detailed wine agreement with the EU, this covers all aspects of wine production in both Europe and Australia. We are hoping for a more simplified version with Australia and the UK when it comes to wine. Hopefully, we can move on this as quickly as possible to avoid further uncertainty," he said.

The idea is to draw up templates, which could then used by the government after Article 50 is triggered.

Such templates could ensure that cross-border trading between Europe and the UK is not impinged.

"Critical areas for this are Ireland and potentially places like Calais in France where our customers such as retailers will need to be compliant to both sets of regulations," he said.

In terms of UK duties, Australian exporters would like to see them reduced.

But Taylor is realistic.

"The reality is the UK insists on maintaining abnormally high duties on alcohol versus almost all the rest of the EU."

In the UK, Clare Valley winery Taylors Wines has had a long-standing agreement with Louis Latour Agencies.

This collaboration will continue going into Brexit - and Taylor hopes, will continue to be prosperous for the winery.

But the impact on Sterling looms large.

"We're hoping the pound recovers and becomes stronger in the lead up to Article 50 and Brexit over the next couple of years, as the 15% currency swing will certainly put pressure on pricing if it sticks. The real losers here will be UK consumers for whom all things imported will become more expensive."

He warns of a "belt-tightening" reaction from consumers which could exacerbate a general trend towards drinking less - and this against a backdrop where the UK wine market is already down 1.6% in 2016.

However, Taylor says this could be down to a "cyclical" pattern, adding that the trade might see wine emerging from the doldrums in the next five years or so - and sooner than other consumer goods.

To make sure this happens, the UK and its international partners need to work towards something which is beneficial for both parties.

He said: "The drinks industry contributes significantly to the UK economy so we need an agreement that recognises this, with jobs and growth encouraged. There is an excellent opportunity for both countries to sign an agreement that recognises the economic benefits of Australian wine in the UK economy.

"Political leaders of both the UK and Australia are starting to have some initial discussions and wine is one of the major products that is traded between the two countries."

Printer friendly version