By Sally Chandler
The Peru-Australia Free Trade Agreement came into force on February 11, 2020. Peru has been one of the fastest growing economies in Latin America over the last decade. In 2018-19, Australia’s two-way trade with Peru was worth $656 million. PAFTA builds on the gains secured in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TPP-11), enabling Australian businesses to take advantage of this growing market and strengthening our economic relationship with Latin America.
By removing certain barriers to trade and investment, PAFTA makes doing business between our two countries easier. Under PAFTA, Australian exporters to Peru gain substan-tial new trade and investment opportunities.
Particular outcomes include:
- elimination of tariffs on beef within five years to en-sure that Australian will have duty free access to the Peruvian market at the same time as the US;
- dairy farmers will be able to compete with competitors, and outcomes on certain dairy products, such as butter, ex-ceed outcomes provided to the EU;
- immediate duty free access for Australian wine, sheep meat, most horticulture products, kangaroo meat and wheat;
- Peru will eliminate all tariffs on seafood on entry;
- new trade rules to encourage the use of ultra fine Australian merino wool;
- immediate duty free access for pharmaceuticals, medical devices, paper and paperboard;
- immediate elimination of tariffs on base metals including iron ore, copper and nickel;
- the best services commitments that Peru has offered any other country, which will create new opportunities for Australian mining service providers;
- guaranteed access for Australian lawyers, engineers, architects, accountants and urban planners;
- recognition of Australian degrees by Peru;
- and further growth and diversification of Australian outward investment by opening up growing market sectors such as mining and resources, tele-communications and financial services.
By setting high quality rules and promoting transparency of laws and regulations, PAFTA will provide certain-ty for businesses and reduce costs and red tape for Australian exporters, service suppliers and investors in Peru.
The DFAT Free Trade Agreement Portal provides easy access information on trading with Peru under PAFTA at www.ftaportal. dfat.gov.au
For international trade and investment assistance contact the TCCI’s TradeStart Adviser, Sally Chandler, at email@example.com or phone 1300 559 122.