Australia and Peru have signed a free trade pact worth hundreds of millions of dollars for Australian farmers and businesses, expected to deliver jobs and an extra $13.5 million to sugar cane farmers. Under the agreement, 99% of tariffs that Australians exporters face will be eliminated. The Prime Minister, who is in Vietnam for Asia-Pacific Economic Cooperation (APEC) summit, said the Peru FTA would also open doors for meat, dairy and seafood producers, pharmaceutical and medical supplies and services industries.
There is also hope farmers could get another sweetener under the Trans-Pacific Partnership (TPP), with 11 member states potentially signing-off on a deal this week. The deal marks one of the first steps toward reducing trade barriers in the Pacific region after U.S. President Donald Trump withdrew the United States from the 12-nation TPP trade agreement, which Australia and Peru had signed onto.
Peru is one of the fastest-growing economies in the world with an average growth rate of 5.9 per cent over the last decade. Last year they imported more than $6 billion worth of agricultural products.
The free trade agreement, finalised within just five months of launching talks, will also open up trade in beef, rice, dairy, almonds, sheep meat, wine and mining technology and services. The deal will allow 30,000 tonnes of sugar to be exported straight away, then doubling to 60,000 tonnes within five years. Within 18 years, that number is expected to grow to 90,000 tonnes. Australia’s dairy industry said it would have an export quota of 7,000 tonnes of dairy products, peaking at 10,000 tonnes within 10 years.
The deal will be operational once Australia and Peru finalise legislation.
