Australian and Peruvian businesses, farmers and families now would be the big winners. The equation is simple: more trade means more exports; more exports means more jobs, higher wages and better incomes.
Canberra: Australia and Peru have finalised a comprehensive trade agreement that will generate exports, income and jobs.
The conclusion of the Peru-Australia Free Trade Agreement (PAFTA) creates new opportunities for Australian exporters in one of the fastest growing economies and regions in the world.
PAFTA delivers huge wins for Australian businesses with market access outcomes that go well beyond the Trans-Pacific Partnership (TPP) Agreement.
Australian farmers, effectively shut out of the market until now, will have the opportunity to compete on a level playing field.
PAFTA will eliminate 99 per cent of tariffs that Australian exporters face into Peru.
Sugar, dairy, rice and sorghum farmers will enjoy historic market access opportunities.
Australia’s sugar market access is more than any other sugar exporting country has achieved in the last twenty years and equivalent to roughly 30 per cent of Peru’s sugar imports.
Peruvian supermarkets are already asking about getting Aussie beef on their shelves – this agreement will help that happen sooner.
There will be immediate duty free access for Australian sheep meat, most wine and most horticulture products including almonds, kangaroo meat and wheat.
Australia has secured the best services commitments Peru has ever offered.
Peru will recognise Australian degrees, helping Australian universities attract more Peruvian students to study in Australia.
This is fastest trade agreement Australia has ever concluded after negotiations were launched in May earlier this year.
Australian Prime Minister Malcolm Turnbull at the time of signing of the Trade agreement with Peru
PRIME MINISTER: This is a great outcome, it is a great Free Trade Agreement, it underlines the commitment that President Kuczynski and I, and our governments have to free trade and open markets.
We know that is what delivers more investment, more entrepreneurship, more jobs, is what is driving, what we need to drive the global economy further to deliver greater opportunities for our peoples.
Now already there are 90 Australian companies operating in Peru, $5billion of investment. This agreement will create exciting new opportunities for both our countries. Our businesses, farmers and families will enjoy tangible benefits; more jobs, higher wages, better incomes, more affordable products.
Peru is one of the fastest growing economies in the world, as befits a nation led by one of the world’s leading economists, so it’s quite appropriate, with an average annual GDP growth of 5.9 per cent over the last ten years. It’s got an economy worth around annually $189 billion and a population of 31 million.
We have a lot in common, we’re two of the few countries to experience uninterrupted economic growth for over a decade – 17 years for Peru, 26 for Australia. And as I said at the outset we have a shared commitment to free trade and open markets.
We know that protectionism is not the solution to getting out of the low growth trap, which some people have argued around the world. Protectionism is actually like digging a hole and keep on digging it deeper and deeper, it’s self-defeating.
We’ve learnt the lessons of history – all of us should have, we know that this is an indication of the opportunities we can deliver through free trade, just as we’re working together on the TPP 11, which of course, you remember Mr President we started discussing at APEC in Peru.