The United Kingdom is due to leave the European Union on March 29 next year. However, with growing ambiguity as to what final form Brexit may take, the UK and EU are looking towards Australia to provide a beacon of certainty.
With negotiations almost 18 months old, little has been agreed between the two trade heavyweights.
According to Professor Bruce Wilson, the Director of the European Union Centre at RMIT University, the UK in particular is starting to pay attention again
“Until Brexit, the UK was focused on being part of the single market, and so most businesses and politicians were looking at what was happening within the EU,” he said.
“Now the Brits are looking to places especially Australia to see what’s happening and looking for trade opportunities.”
Despite seeing a huge spike in trade tours between Australia and the UK over the past 12 months, nothing can officially happen until Britain has left the EU.
“For the most part, Australia’s trade negotiations with the EU has been effectively funnelled through the UK. So, although there has been talk about Australian trade agreements with Europe in the past, it has been through a British lens,” Professor Wilson said.
It is true that Australia’s links with Europe have not always been strong. Historically, Australia was not a key partner for the EU. According to Piers Ludlow, the EU regarded Australia as “too far away, too rich and too stable”.
However, now Australia is presenting itself as an attractive location for European businesses within the Asia Pacific region.
As well as a seismic shift within the Asia Pacific region, many third country companies (those outside of the EU) like Multiplex and Lendlease are relocating their headquarters from London to cities such as Dublin, Paris and Frankfurt – within the EU.
(Photo: Jack Hayes)
