Australia, Peru Sign Free Trade Agreement

by Mary Swire, Tax-News.com, Hong Kong

14 February 2018

Australia and Peru have signed a free trade agreement (PAFTA) that will eliminate tariffs on 99 percent of Australian goods within five years of its entry into force.

The agreement was signed on February 12. Negotiations were launched in May 2017, making PAFTA the fastest trade agreement that Australia has successfully concluded. The Australian Government said that PAFTA will deliver market access that goes beyond the recently revived Trans-Pacific Partnership Agreement.

Australian exports of sugar, dairy, rice, sorghum, sheep meat, wine, kangaroo, almonds, pharmaceuticals, medical devices, paper products, and machinery will all have immediate tariff-free access to the Peruvian market. Beef will be tariff free within five years.

According to a statement issued by Australian Trade Minister Steven Ciobo, "PAFTA will serve as a gateway to Latin America, and to value chains between Asia and the Americas. It is also a stepping-stone to a trade agreement with the Pacific Alliance (Mexico, Colombia, Chile, and Peru)."

Ciobo told a press conference that both countries are "winners" in this agreement. He said that exporters will gain access to a new market and that importers will see cheaper import costs, with those involved in manufacturing and agriculture expected to benefit in particular. He is also hopeful that Australian service providers will feel the benefits of the agreement.

TAGS: business | free trade agreement (FTA) | Chile | export duty | tariffs | Australia | Colombia | Mexico | agreements | manufacturing | Peru | import duty | trade

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