Australia – United Kingdom free trade agreement a boost for wine exports

The Australian wine industry is to benefit from the Australia-United Kingdom Free Trade Agreement to enter into force on 31 May, 2023.

The UK is Australia's second-largest export market by value at $359 million and our largest by volume, with 208 million litres of wine exported to the UK in March 2023.

During his visit to the United Kingdom, Prime Minister Anthony Albanese announced 31 May as the date of entry into force of the Australia-United Kingdom Free Trade Agreement (A-UKFTA), following the expected completion of UK domestic processes.

With the entry into force of this trade agreement, there will be no tariffs on over 99 percent of Australian goods exports to the UK, opening up new export opportunities, including our wine sector.

Australian Grape & Wine CEO Lee McLean has welcomed the Prime Minister’s announcement.

"For wine, the Agreement will see the elimination of import tariffs on entry into force. This creates a level playing field for Australia's wine exports with our major competitors from Continental Europe. We estimate the tariff elimination represents a saving of approximately AU$50 million per year for the Australian wine sector, although a decline in exports in recent months in line with changing market conditions in the UK may reduce this figure," said McLean.

“Free Trade Agreements (FTAs) are a major contributor to improving export market access and removing barriers to trade. These are now more important than ever with the Australian grape and wine sector’s continued efforts to grow and diversify our export markets,” he concluded.

Prime Minister of Australia, Anthony Albanese MP, said, “This agreement will deliver significant benefits to Australian exporters, consumers, workers, and our economy more broadly.

“The Australia-UK FTA represents one of the most comprehensive, innovative, and ambitious free trade agreements concluded by Australia to date and strengthens an already close relationship between Australia and the UK.”

Minister for Trade and Tourism, Senator the Honourable Don Farrell, said, “Our trade agreement with the UK will significantly reduce costs for exporters and assist Australian businesses seeking to diversify trade to a wider range of overseas markets.”