Ratification of the Peru-Australia Free Trade (PAFTA) will unlock the benefits of open and fair trade and generate more highly-paid, highly skilled jobs in both Peru and Australia.
PAFTA is part of a growing number of free trade agreements which deliver major investment and job opportunities for Australia’s mining industry.
Under PAFTA, Peru will eliminate 99.4 per cent of its tariffs, including on valuable Australian resources such as iron ore, copper, nickel, coal, mineral fuels and oil.
The ratification of PAFTA will accelerate reduced tariffs on Australian exports of goods to Peru, provide greater access for Australian services in the Peruvian market and reduce trade costs through more streamlined customs and administrative arrangements.
Australian mining commodities and mining equipment, technology and services (METS) dominate the $640 million trading relationship with Peru. In 2017, seven out of the top eight of Australia’s largest merchandise exports to Peru were METS or mining commodities.