January 18, 2019

Brexit deal crushed: This is what it means for Australia

This is an edited version of an article by Lucy Dean and Jessica Yun at Yahoo Finance.

British Prime Minister Theresa May has had her Brexit deal overwhelmingly rejected by British MPs, throwing an already wobbly EU into more uncertainty.

But the uncertainty doesn’t end at European shores.

Australian winemakers have been stockpiling supplies across European warehouses in preparation for a no-deal Brexit, the Australian Financial Review reports. Britain is the hub for Aussie wine exports to Europe, which means the Australian wine industry would suffer a major hit from an adverse Brexit decision.

And the Meat and Livestock Australia organisation warned last year that a disorderly Brexit poses a range of risks to Aussie red meat exports.

Today, in the wake of the historic defeat, economists and experts are taking a new look.

The free movement of workers is of critical importance: Bailador Technology Investment co-founder David Kirk

“Uncertainty is never good for sales as clients sit on their hands waiting for clarity on which way regulations and the economy are heading. Information technology companies have the benefit of selling electronically delivered products so there are no logistics or physical border problems.

“The free movement of people is always a concern for tech companies. The best talent is globally mobile and hard to find. If the UK restricts the inward flow of developer talent from Europe that will not be good.”