On Monday, the governments of Australia and Peru signed the Peru-Australia Free Trade Agreement (PAFTA), that is expected to develop new jobs and economic growth for Australia, according to Steven Ciobo, Australia’s Trade Minister.
The ratification of PAFTA comes after nine months of work on both sides, since the start of negotiations in May 2017, Xinhua news agency reported.
Under the FTA, tariffs on 99% of Australian goods exported to Peru will be eliminated within five years. In addition, Australia will become one of Peru’s biggest suppliers of sugar, exporting 90,000 tonnes to Peru in 18 years; the equivalent of 30% of Peru’s total sugar imports.
Except from this, PAFTA is expected to bring an increase of Australian exports to beef, dairy products, pharmaceuticals, horticulture products, kangaroo meat and wheat to Peru.
“This elimination of tariffs will help Australian farmers, who have effectively been shut out of the market until now, grow their exports. The more they export, the more Australian jobs they will create,” Mr. Ciobo was quoted as saying by Xinhua.
