The Australian-Peru Free Trade Agreement (FTA) that we discussed in an earlier blog post has now officially been locked in by Australian Prime-Minister Malcolm Turnbull, in a major win for both countries. This follows an unexpectedly short negotiation period of only five months.
Mr. Turnbull officially confirmed the agreement during the Asia-Pacific Economic Co-operation (APEC) summit in Vietnam. It will eliminate 99% of tariffs between the countries, and in the process will open up the market to industries that were previously completely shut out. "Our businesses, farmers, and families are the big winners," said Mr. Turnbull. "The equation is simple: more trade means more exports; more exports, means more jobs, higher wage, and better incomes."
The Prime Minister isn't wrong. Australian exporters and particularly farmers now have a lucrative opportunity for their dairy, beef and sugar products to enter the Peruvian market. In addition, wheat products and most wine products will immediately get duty free access to Peru.
Also under the deal, Peru will begin recognising Australian degrees, which offers a great opportunity for Australian universities to attract potential Peruvian students. On the flipside, Australian lawyers, accountants, architects and engineers will now be able to provide their services in Peru.
This is an extremely exciting agreement that has the potential to fundamentally change the relationship between the two countries. Peru is already a substantial market that is growing rapidly, and this FTA will allow Australia to share and assist in Peru's economic growth, while it gives Peru new opportunities for expansion by facilitating new ways for the nations to engage with each other.
Australian companies and individuals who are interested in the Peruvian market should contact us to find out on how to best take advantage of this opportunity. With a wealth of experience in the region, Harris Gomez Group is uniquely placed to provide advice on the specific challenges of the Peruvian market.
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