Australian mining equipment, technology and services (METS) exports are worth approximately $15 billion annually.
Australia’s growing network of free trade agreements (FTAs) offers significant potential for Australian METS exports to grow even further. The recently concluded Indonesia-Australia Comprehensive Economic Partnership Agreement (IACEPA) provides increased opportunities and regulatory certainty for Australian METS suppliers into our biggest market for METS exports. Under IA-CEPA, Australians can own up to a 67 per cent stake in a company that provides contract mining services and mine site preparation services in Indonesia. In the oil and gas sector Australians can own up a 75 per cent stake in a company that provides platform construction services. Once it enters into force, IA-CEPA will provide improved certainty for associated services such as technical testing and analysis, and engineering and surveying services.
The ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) actively supports Australian METS interests in the region. By 2020, 96 per cent of our current exports to ASEAN nations will be tariff free thanks to AANZFTA, including our world-leading METS products.
The Comprehensive and Progressive Trans Pacific Partnership (CPTPP or TPP-11) entered into force on 30 December 2018, offering Australian manufacturers and exporters of mining equipment duty-free access across the CPTPP region. The FTA binds tariffs at zero in countries where Australian exports already have tariff-free access, providing an assurance to Australian exporters that member countries cannot raise these tariffs in the future. New commitments from Chile and Mexico on certain METS exports will guarantee better access for Australian suppliers in key Latin American markets.
The Peru Australia Free Trade Agreement (PAFTA) also supports the expansion of METS exports in Latin America. For the first time, Australian suppliers will have the guaranteed right to bid for government procurement opportunities with PETROPERU and entities in Peru’s government-owned electricity and hydropower sectors. Australian METS exporters will also benefit from dutyfree access for virtually all their exports to Peru.
Australia’s METS sector has an international reputation for high quality products and services, and stands ready to take advantage of the range of FTA outcomes in key Indo-Pacific markets. More information on FTA outcomes is available at the DFAT FTA website, and exporters can access tariff rates and services commitments on DFAT’s FTA portal.