The Peru-Australia Free Trade Agreement (PAFTA) was signed in Da Nang, Vietnam at the 25th Leaders’ Summit of the Asia-Pacific Economic Cooperation (APEC) Forum.
This comprehensive agreement will ‘generate exports, income and jobs’ for both economies.
“PAFTA will eliminate 99 per cent of tariffs that Australian exporters face into Peru.”
The agreement provides strong access opportunities for Australia’s agriculture exports.
"Today's news keeps Australia’s trade agenda moving forward and creates additional demand for Australian farm exports in a fast-growing market with a sizeable population of 31.5 million," said National Farmers’ Federation President Fiona Simson.
Australian Farmers have been locked out of this rapidly growing economy until now. It is reported that “in Peru, Australian farm products face tariffs of between 9%-29% with the potential for tariffs as high as 68% under Peru’s existing tariff schedule through the Word Trade Organisation”.
Under the terms of the agreement, enhanced market access would be available from day one for sugar, dairy, rice, sorghum, sheep meat, seafood and wine. The FTA also includes staggered benefits for grains.
“What is great about the deal, is that PAFTA sends some great signals to the rest of the world, in the midst of a surge in protectionist sentiment," Ms Simson said.
In under 6 months, PAFTA, was the fastest trade agreement to ever be concluded but is also considered to have the best services commitments Peru has ever offered. This is a major success for Australian businesses, and the Australian economy.
Peru-Australia FTA to deliver jobs and growth, Australian Government
Peru-Australia Free Trade Agreement secures sweet terms for sugar, keeps free trade moving forward, National Farmers’ Federation
Story: John Farrugia