Peru Australia FTA slashes over 99% of agriculture export tariffs
Sugarcane farmers across Hinkler will have duty-free access to Peru following the signing of the Peru-Australia Free Trade Agreement (PAFTA) today.
Federal Member for Hinkler Keith Pitt said initial access of 30,000 tonnes of sugar into Peru would grow to 60,000 tonnes in year five and to 90,000 tonnes by year 18.
“Peru is one of the fastest growing economies and regions in the world and this new trade deal is a huge win for farmer’s right across Hinkler, creating expanded export opportunities for our sugar and horticulture sectors,” Mr Pitt said.
PAFTA will eliminate 99.4 per cent of tariffs that exporters face into Peru, putting Australian farmers on equal footing with foreign competitors.
“This is fantastic news, putting more cash in the pockets of for our hardworking farmers while building on our $435 million two-way trade with Peru.”
The key tariff outcomes for Australian agriculture through PAFTA will include;
Immediate elimination of all tariffs for seafood, sheep meat, kangaroo meat, most horticulture products and wheat (current tariffs are up to 9 per cent).
Elimination of all tariffs for beef within five years and immediate elimination of most tariffs for pork (current tariffs are up to 17 per cent).
“PAFTA will allow us to better compete in the Peruvian market and supports the potential for expanded trade into the broader Latin American region,” he said.
The signing of PAFTA follows the finalisation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which will lock in greater trade access to markets worth almost $10 trillion combined, including Japan, Canada, Mexico, Malaysia, Singapore, Chile, Peru, Vietnam, New Zealand and Brunei.
For more on PAFTA, visit http://dfat.gov.au/trade/agreements/pafta/Pages/peru-australia-fta.aspx