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Australia Seeks Compensation Over Brexit-Related Trade Disruption

Several non-European countries and Australia have demanded for compensation from EU and US due to disruption of trade related to Brexit. Australia’s lamb and beef exports suffered huge losses due to Brexit confusion. Australia said that it could suffer a reduction in its $366m (£284m) of annual meat exports to the UK and EU as a result and claimed its industry had suffered disruption due to Britain’s exit from the EU being delayed three times. Australia is in the midst of negotiating a free-trade agreement with the EU and has signed a “mutual recognition agreement” with the UK after a globe-hopping trade mission by Liam Fox, the former trade secretary.

The EU limits the volume of agricultural imports from the rest of the world that can come into the trading bloc without full tariffs being applied. A certain amount can come from outside the EU, subject to a finite number of “tariff rate quotas” (TRQs) which allow for lower or reduced duties, rendering exports economically viable for non-EU producers.