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Peru and Australia sign an FTA
Three months after closing the negotiations, Peru and Australia have signed a free trade agreement (FTA) in Canberra. Thanks to this agreement more than 96% of Peruvian products will enter Australia with no tariffs.
"We have been able to reach a commercial agreement that will be beneficial for both countries [...] While Peru and Australia are far in the distance, we are getting closer and closer to an advance," said the Minister of Foreign Trade, Eduardo Ferreyros, during a ceremony held at the Embassy of Peru in Australia.
Australia is currently one of the most prosperous and stable countries in the world. Its economy has been growing uninterruptedly for 25 years and it has a per capita income of US $ 49,925. The dialogue between the Peruvian authorities and their Australian counterparts began to take shape during the meetings held for the Trans-Pacific Economic Cooperation Agreement (TPP), and the negotiations were concluded in a period of seven months.
Currently, Peruvian shipments to Australia represent 0.4% of the country's total exports but the new trade agreement will open opportunities for several sectors.
Local agricultural exports have a high potential in the near future, as Peru can supply Australian suppliers in the north of the country and suppliers in eastern Asia coffee, fresh grapes, avocados, mango, asparagus, cocoa, and artichokes during the counter season, stated Carlos Posada, the former Vice Minister of Foreign Trade.
"The FTA helps us with preferential access and sanitary rules, but the logistics will be an important challenge for the businessmen due to the distance between Peru and Australia. We will have to work hard on that aspect to move our trade," Posada added.
Publication date: 2/14/2018
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