Australia has just completed a significant free trade agreement with Peru, one of the fastest growing economies in the world.
Said to be worth hundreds of millions of dollars to businesses across numerous industries, the pact is being labelled a massive success by the Turnbull administration.
It is reported that 99% of tariffs will be removed for Australian exporters, offering a welcome relief to sectors such as agriculture which have been struggling of late.
As Australian businesses deal with political shifts in North America and Europe, and geopolitical risks in North Asia, there is significant opportunity for Australia across Latin America. Countries there are looking to diversify their trade and investment relations, and see Australia as a country that is still embracing open global trade and investment.
Lisa McAuley, CEO of the Export Council of Australia (ECA), said the Peru deal could act as a stimulus to forge ahead with the 11-party Trans Pacific Partnership, which some outlets are reporting as being close to completion.
“The greatest value of the FTA with Peru is adding momentum towards completing the Trans Pacific Partnership,” commented McAuley.
“If implemented, the TPP will deliver major benefits for Australia across a wide range of sectors. It will simplify exporting by setting uniform rules for trading across TPP members. Plus, by consolidating several FTAs into one big one, it’ll make it easier for businesses to be eligible for tariff reductions and simplify the process for claiming those reductions.”