Australia and Peru: A Growing Trade Partnership
In November 2018, Australia and Peru signed a free trade agreement (FTA), marking a significant milestone in the relationship between the two countries. The agreement represents an opportunity to strengthen economic ties and expand trade between Australia and Peru.
The FTA covers a wide range of areas, including goods, services, investment, intellectual property, and e-commerce. It eliminates tariffs on 99% of Australian goods imported into Peru and 96% of Peruvian goods imported into Australia. This will provide businesses in both countries with greater access to each other`s markets and new opportunities for growth.
For Australian exporters, the FTA creates a level playing field in Peru. Previously, Australian goods faced high tariffs and trade barriers, making it difficult for Australian businesses to compete with other countries. With the elimination of tariffs, Australian businesses can now access the Peruvian market on equal terms with other countries. This will be particularly beneficial for Australian agriculture and mining industries, which are major exporters to Peru.
For Peru, the FTA opens up new opportunities in Australia, one of the largest and most developed economies in the Asia-Pacific region. Peru is keen to expand its exports beyond traditional markets such as the United States, Europe, and China. The FTA will provide Peru with preferential access to the Australian market, which is known for its high-quality and innovative products. This includes Peruvian exports such as avocados, grapes, and quinoa, as well as other goods like textiles and garments.
In addition to goods, the FTA also covers services such as education, tourism, and professional services. This will benefit Australian businesses such as universities, hotels, and consulting firms, which can now offer their services in Peru. In turn, Peruvian service providers such as tour operators and IT firms can access the Australian market.
The FTA also includes provisions on intellectual property (IP) and e-commerce. This will enable Australian and Peruvian businesses to protect their IP rights in both countries and promote the use of digital technology in trade. The FTA also contains a chapter on sustainable development, which includes commitments to protect the environment and uphold labor standards.
Overall, the FTA between Australia and Peru represents a significant opportunity for both countries to strengthen their economic ties and expand trade. It will open up new markets and create new opportunities for businesses in both countries. As the FTA is implemented, it is expected that the trade relationship between Australia and Peru will continue to grow and flourish.