The new Peru-Australia Free Trade Agreement (PAFTA) announced in November last year has now been signed, with Queensland agricultural producers likely to be some of the biggest winners when the new agreement comes into force.
The new Peru–Australia Free Trade Agreement (PAFTA) has now been signed, with Queensland agricultural producers likely to be some of the biggest winners when the new agreement comes into force.
PAFTA is expected to deliver major benefits to Queensland sugar, dairy and beef producers, who will enjoy reduced tariffs and improved access to the lucrative $4.6 billion Peruvian agriculture market.
Tariffs will also be reduced on a range of other Australian products, including sheep meat, wine, kangaroo meat, almonds, mining equipment, pharmaceuticals, and medical devices.
PAFTA was announced in November last year, and signed on 12 February by Australian Trade Minister Steve Ciobo and his Peruvian counterpart Eduardo Ferreyros.
Announcing the signing, Mr Ciobo said Australia had negotiated PAFTA more quickly than any other free trade agreement, with discussions starting just nine months ago, in May 2017.
Both Peru and Australia must now complete their own domestic treaty-making processes before PAFTA can be implemented in coming months.
For Australia, this will include an inquiry into the PAFTA by the Joint Standing Committee on Treaties (JSCOT).
Peru is one of the fastest growing economies in the world, with an average annual growth rate of 5.9% over the last decade.
Queensland businesses exported $11.7 million worth of merchandise to Peru in 2016–17.
Supporting exports is a key goal of the Queensland Trade and Investment Strategy 2017–2022.