The recent entry into force of the
by the end of 2020, the Peruvian Agriculture and Irrigation Ministry (Minagri) has projected.
The Ministry said this agreement will allow almost 100% of Peruvian agricultural products to enter the Oceanic country without paying tariffs.
On the other hand, 93.3% of Australian products will enter Peru under the same conditions.
Likewise, the
PAFTA will allow the South American country to take advantage of new commercial opportunities and ensure that sanitary and phytosanitary procedures are transparent and efficient. At the same time, the movement of Peruvian technicians and professionals to Australia will be favored.
Small producers
Unlike other trade agreements, the
PAFTA seeks the increasing incorporation of small producers in the promotion of bilateral trade.
"Proof of this is that for the first time a chapter on Small/Medium-sized Enterprises (SMEs) as well as on Competitiveness and Business Facilitation is included, which contributes to the development of the country," it emphasized.
Minagri also stressed that the main agricultural export products —which will enter Australia tariff-free— are
coffee,
quinoa, canned asparagus, cacao beans, cacao powder, chocolate bars, maca flour, carmine cochineal, fresh garlic, and frozen mangoes.
Trade
Last year, Peruvian exports to Australia totaled US$91.6 million, a 56.6% decrease compared to 2018. This situation is expected to improve substantially following the
PAFTA's recent entry into force.