The new Peru-Australia Free Trade Agreement (PAFTA) will open a new market in Latin America to Australian farmers.
Assistant Minister for Agriculture and Water Resources, Luke Hartsuyker, said the agreement will help Australia build on the $590 million trade relationship shared with Peru.
With a population of 31 million and GDP of US$207 billion, plus steadily increasing per capita incomes (US$6,500 in 2017), Peru is a promising partner for expanding agricultural trade.
Winemakers Federation of Australia Chief Executive Tony Battaglene said a number of industries would benefit from the Peru FTA including Australian wine which recognised the region’s growth potential.
“Peru has not been on the radar for most Australian wine exporters,” said Battaglene. “We have been at a competitive disadvantage in Peru because exports from the United States, Canada and the European Union have been enjoying duty-free access under various trade deals.
“This new agreement promises Australia a slice of the action, eliminating tariffs of 9% on bottled wine exports into Peru”
“This new agreement promises Australia a slice of the action, eliminating tariffs of 9% on bottled wine exports into Peru as soon as the agreement comes into force and on other tariff lines within five years,” he said.
“While Peru alone has never been considered a major market for Australian wine, the wider region holds potential and this country could very well be the entrée. It’s also a good template for a deal with the Pacific Alliance – a trading bloc which includes Mexico, Colombia, Chile and Peru.”
FTA’s are important in removing trade barriers and giving exporters a foot into markets on a level playing field.
“We support trade liberalisation around the world as critical to the wine industry’s future growth and resilience. Expanding global markets also delivers returns back home and that helps create robust and prosperous regional economies where our wineries are based,” said Battaglene.
“All credit must go to the Australian Government in continuing its expansive Free Trade agenda. We will continue to support its efforts to remove barriers to trade and create opportunities for Australian wineries and wine businesses into the future.”