SYDNEY, July 21 (Xinhua) -- While Britain's exit from the European Union will have negative economic consequences, Australia is likely in the clear from the fallout, unless others follow suit, a government report released Thursday shows.
A 15-page report, compiled by Australia's Council of Financial Regulators and released by Treasurer Scott Morrison on Thursday, showed Australia is well placed to manage any economic shocks to the expected negative short and medium term impacts on the British economy.
The report showed the size of the impact would be dependent on how much Britain removes itself from the EU, while the European states would suffer from issues reflecting trade and financial links and associated uncertainty.
Morrison told reporters in Sydney that the country's trade links are more orientated towards Asia than Europe, thus these impacts would be very limited on the local economy.
"The Australian economy is somewhat removed from those events ... (and) whether it is our trade engagement, our financial institutions engagement and all of these other areas, the exposure is limited, and that has certainly been the outcome to date," Morrison said.
The caveat, however, is that the full Brexit process has yet to be carried out, and those risks will likely be a point of discussion among G20 finance ministers at the weekend, Morrison said.
The local economy, however, will likely profit from the Brexit as both Australia and Britain are likely to begin initial talks on a free trade agreement, while the nation continues its ambitious trade agenda by simultaneously continuing negotiations on a deal with the EU.
"There is no doubt we are well placed both in the U.K. and in Europe to secure the opportunities that are there, and we will continue to pursue that," Morrison said.
"That is in the interests of Australian exporters."
