Australia and Peru launched negotiations for a free trade agreement (FTA) on 24 May. A fellow signatory to the Trans-Pacific Partnership (TPP) Agreement, Peru has been one of the fastest growing economies in Latin America, and the world, over the last decade. A Peru-Australia FTA (PAFTA) would enable Australian businesses to access the opportunities presented by that growing market. It would also support our goal of capturing the TPP’s benefits, and strengthen our economic relationship with Latin America.
We invite stakeholders to submit their views on the potential opportunities and impacts of an FTA. See the Submissions page for more information.
Peru is a growing market for Australian goods and services exporters. In 2015-16, total two-way trade in goods and services with Peru was worth $504 million, up 19.4 per cent from the previous year. An FTA with Peru would provide Australian businesses with an opportunity to expand our engagement with this emerging market.
Peru is also an attractive investment destination for Australia. The number of Australian companies operating in Peru has grown from ten in 2003 to currently over ninety. The Australian and Peruvian mining sectors, in particular, are already closely integrated. An FTA would provide a platform for expanding and deepening these relationships.
Why is the Government negotiating an FTA with Peru?
As one of the fastest growing economies in Latin America over the last decade, Peru presents a growing opportunity for Australian businesses. An FTA would ensure that Australia is well-placed to share in Peru’s economic growth, providing opportunities for expanding our engagement with this emerging market. It is a strategic goal to diversify export markets for Australian exporters.
An FTA would complement and support our goal of capturing the benefits of the TPP, and strengthen our economic relationship with Latin America. A Peru-Australia FTA could be negotiated relatively quickly, based on our shared negotiating history in the TPP.
Australia will seek a comprehensive, high quality agreement. In particular, areas of interest for better goods market access include beef, sheep meat, dairy, wheat, rice, sugar, wine, pharmaceuticals, medical devices, aluminium products, and mining equipment. By addressing existing tariff barriers and customs procedures, we will aim to ensure that goods trade with Peru operates as smoothly and simply as possible.
For services suppliers, the Australian Government will seek further opportunities for Australian suppliers in sectors such as professional services, energy and mining-related services, environmental services, construction services, and transport services.
Australia will also seek to address a range of issues impacting on trade, including digital trade (e.g. e-commerce) and competition policy.