WSTA urges free trade with Australia and New Zealand

The Wine and Spirit Trade Association (WSTA) has urged the UK Government to remove tariffs with Australia and New Zealand in order to improve trade relations post-Brexit.

Last week, WSTA submitted a document to the Trade Select Committee, emphasising the need for new bilateral agreements after Britain exits European Union (EU).

Currently, UK imposes a tax of around 10p-12p on a bottle of still wine and 22p on sparkling wine imported from Australia and New Zealand.

On the other hand, British spirits importers in these two countries pay an additional 5% of the value of the products.

Wine and Spirit Trade Association chief executive Miles Beale said: “In her speech in Davos this week, the prime minister said the UK intends to be at the forefront of championing new trade deals.

“We welcome this and call on the government to take the opportunity post Brexit to enhance trade with Australia and New Zealand by removing all unnecessary regulatory barriers and allowing goods to flow more freely between the markets. Australia and New Zealand import more spirits from Britain than any other country.

“Australian wine is the most popular wine drunk in Britain and growth of New Zealand wine sales are outpacing any other country. Australia and New Zealand import more spirits from Britain than any other country.”

WSTA noted that in 2016, Australia exported £1.5bn worth of wine to the UK. In contrast, UK spirits exports to Australia were worth only £613m.

The New Zealand wine exports in the UK during the same period was £618m and UK spirits exports to New Zealand was approximately £50m.

Under WSTA estimates, the customs tariffs levied on wines imported from Australia and New Zealand amounted to some £35m in 2016.

According to WSTA, the removal of tariffs on wine imported from Australia and New Zealand would not only allow Britain to maintain its position as the international market, but also boost the UK economy and create more employment opportunities.