UK spirit and wine businesses are celebrating the free trade agreement (FTA) with Australia, which will reduce the cost for exporters and importers alike and will mean greater choice for UK consumers, reports the Wine and Spirit Trade Association (WSTA).

In 2020, the UK exported £27m worth of British gin to Australia, which was one of the few markets to continue growing during a year in which exports were heavily hit by the pandemic. UK distillers are expecting to see those exports continue to grow, with an agreement likely to remove the 5% tariff Australia levies on the spirit.

On top of good for UK spirits exports, an FTA should also see tariffs removed on wine imports from Australia. Wine is the largest agricultural export from Australia to the UK and in 2020 the equivalent of 230 million bottles were sold in UK shops and supermarkets, worth £1.5 billion in sales.

Miles Beale, chief executive of the Wine and Spirit Trade Association, said: “The benefits of a tariff-free, quota-free UK-Australia trade deal are great news for British producers exporting English wine and spirits to Australia. It’s also good news for importers as it will enhance the UK as a global hub for wine trading, and will ultimately benefit UK consumers too.”

Not all UK businesses are celebrating the deal, however. UK beef and lamb producers have yet to be given assurances that cheaper Australia meats won’t flood the market.