The Australian winemaker has raised a glass to reach a free trade agreement in the UK

One of Australia’s largest wine exporters said the UK’s free trade agreement would reduce the cost of better quality wine to help British drinkers fill the gap left by the fall in exports to China.

The Australian wine industry has faced tough tariffs of 218 per cent set by Beijing last year as diplomatic and economic tensions between the two countries have increased.

Limestone Coast Winery, one of Australia’s top 20 wine exporters in terms of value, said the profit margin “disappeared overnight,” as China accounted for about 50 percent of its revenue and most of its cash flow.

“When the rate went down it was‘ black Friday ’,” said South Australian producer Richie Vandenberg. Overall, 96 per cent of Australian wine exported to China sank between December and March, according to data from the government agency Wine Australia.

But a no fees, no fees The UK-Australia trade agreement has strengthened hopes that the UK will fill the gap left by China.

Wine Australia’s largest export to the UK is wine, ahead of lamb, but it depends on a tariff that adds 10p to 12p per bottle of wine, according to Wine Australia.

Limestone Coast Winery, which is behind The Hidden Sea label but supplies wines from the same brand as supermarkets, said this would make the country “far away” from the least profitable market for its products, but would allow it to compete without tariffs.

Justin Moran, one of the company’s founders, said: “Chilean wine has a 13 per cent tariff on us in the UK. If Australia can make a good deal with the UK, it would greatly benefit Australian wine and benefit the UK consumer.”

The UK-Australia agreement is embroiled in controversy as farmers have warned that tariff-free cows and lambs imported from Down Under could have a devastating effect on UK agriculture. Australian Agriculture Company, the country’s largest meat exporter, said this week a tariff-free deal could be reached Sales in the UK increased tenfold.

Vandenberg, speaking from the Coonawarra region where the group bears its fruits, argued that the UK and Australia are natural trading partners. “I have an empathy for Scottish farmers, but it would be a pity if a free trade agreement between the UK and Australia were to be stopped,” he said. “We are a great trading partner. Consumers in the UK will win. “

Not all Australian growers use the “old world” to offset the impact of Chinese tariffs. The owner of the Accolade Wines, Hardys and Echo Falls brands said so Wine from Chile and elsewhere to overcome the tax on China.

Australian wine exports from the UK rose by a third to $ 461 million between December and March, and bulk volume rose by a fifth to 264 million liters. The average value of Australian wine in the UK rose by 10 per cent to $ 1.75 per liter, the highest level in a decade.

Limestone Coast Winery, which has been selling 100m liters of wine since its inception in 1998, hopes to use the savings to potentially eliminate tariffs in the UK by promoting The Hidden Sea brand – it uses profits to remove plastic from Indonesian seas.

Moran has accused some UK retailers and the government of “green cleaning” with single-use plastic, which is sending a large amount of waste to Turkey and south-east Asia. “They’re completely retarded, but they still hit the chest for removing the plastic,” he said.

Vandenberg is an Australian Rules football icon who played for Hawthorn 20 years ago and was the main character of the villain ‘line in the sand’ conflict.

“People know me from the hard and tough sport of the AFL, but here I’m taking plastic out of the ocean,” he said, adding that people don’t have to be “green” to solve problems like plastic pollution.