Andina

96% of Peruvian products to enter Australia tariff-free thanks to FTA

10:20 | Lima, Feb. 11.

Peruvian Foreign Affairs Minister Edgar Vasquez on Tuesday highlighted the entry into force of the Free Trade Agreement (FTA) between Peru and Australia —an agreement that will bring significant benefits to the South American country, such as the tariff-free entry of 96% of Peruvian products to the Australian market.

"Thanks to the entry into force of the FTA with Australia, Peru is moving forward in its wish to position itself strategically in the international context, particularly in the Asia-Pacific region. This FTA expands the network of trade agreements that our country has (already signed), generating greater opportunities for foreign trade," he expressed.

The minister recalled that —in February 2018— Peru and Australia signed the trade agreement after six months of negotiations, which evidenced both countries' interest in integrating their markets.

For her part, Australian Ambassador to Peru Diana Nelson welcomed the entry into force of the PAFTA and said that this fact marks a new stage in the commercial relationship with Peru.

According to the diplomat, the PAFTA will grant Australian exporters better access to one of the most successful economies in Latin America.

Benefits

Minister Vasquez affirmed that the FTA with Australia is one of the "most ambitious" trade agreements, with respect to the coverage that has been achieved for Peruvian products.

"This way, 96% of our exports to Australia will be tariff-free from the entry into force of the FTA. Among the products that will benefit the most are avocados, fresh grapes, blueberries, tangerines, cotton shirts and T-shirts, cuttlefish, shrimp and frozen prawns, among others," he explained.

Concerning the remaining 4% of exports, tariffs will be eliminated within four years. In this last group are products such as bamboo, and some goods from the sectors: chemical, footwear, metal-mechanic, as well as industrial machinery.

Regarding services, the Mincetur head said this agreement establishes an unrestricted framework for exports of services, such as those related to mining, manufacturing, education, and software design, among others.


(END) CNA/MVB

Published: 2/11/2020
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