The new Peru-Australia Free Trade Agreement (PAFTA) will open a new market in Latin America to Australian farmers.
Assistant Minister for Agriculture and Water Resources, Luke Hartsuyker, said the agreement will help Australia build on the $590 million trade relationship shared with Peru.
With a population of 31 million and GDP of US$207 billion, plus steadily increasing per capita incomes (US$6,500 in 2017), Peru is a promising partner for expanding agricultural trade.
“This free trade deal will eliminate tariffs and create new agricultural export opportunities to the benefit of Australia’s meat sector—including beef, sheepmeat and kangaroo—and the sugar, dairy, rice, sorghum, horticulture and wine sectors,” Minister Hartsuyker said.
“Economic partnerships are the bedrock of success for modern trading nations and this agreement reflects Australia’s excellent global reputation as a producer of clean, green, high-quality produce.
“The deal with Peru also creates greater potential to expand trade into the broader Latin American region, to fuel growth of our agricultural sector and generate better returns at the farmgate.
“Australian agricultural industries have developed from the earliest years primarily based on the opportunity to supply global markets.
“Agricultural exports are a key pillar of our national economy and the Coalition has consistently sought to improve market access for our farmers.
“Bringing an extra buyer into the market helps strengthen the hand of farmers to secure higher prices, with flow on benefits not only to rural and regional Australia, but all Australians.
“Peru is a member of the Pacific Alliance trading bloc and this FTA is a stepping stone towards an Australian-Pacific Alliance FTA, which would include Mexico, Chile and Colombia.
“Identifying and making use of these new market access opportunities will help support the ongoing productivity and profitability of Australian agriculture.”
The government will work closely with Australian export industries to guide and inform preparations for technical market access submissions to Peru. Discussions are underway between Australian and Peruvian authorities to establish the necessary import protocols for Australian beef and sheepmeat.
Source: Australian Government