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Peru diversifies markets: Promising stage for trade with Australia begins

13:47 | Lima, Feb. 11.

Peru's foreign trade policy continues gaining recognition for its efforts to diversify markets, especially with the recent entry into force of the Peru-Australia Free Trade Agreement (PAFTA).

Housing 25 million inhabitants and a GDP per capita of US$53,250, Australia relies on a large capacity to purchase goods and services, compared to Peru's US$6,470, according to data from the World Bank in 2018.

"Today, the Free Trade Agreement with Australia enters into force (...). So, now we have 20 agreements in force with more than 50 countries," Deputy Foreign Trade Minister Sayuri Bayona told El Peruano official gazette.

"It is an agreement that will allow us to enter the Oceania market and is one of our most ambitious FTAs. It will provide opportunities for the agro-industry, asparagus, and coffee, among others, relying on tariff-free access," she added.

Background

The FTA was signed on February 12, 2018, in Canberra (Australia) and 
ratified by the Peruvian side on February 22, 2019.

It established that 96% of Peruvian products would enter the Australian market tariff-free from the first day in force, whereas the remaining 4% would do so in a gradual process over a maximum period of four years.

"In Oceania, Australia is one of Peru's main markets. We believe it has a lot of potential, not only for goods, but also for services," the deputy minister said.

"For example, we develop the mining (sector), and Australia is an important country in that sector," she noted after her participation in the forum titled "The Fourth Industrial Revolution and International Trade," organized by the General Secretariat of the Andean Community (CAN).

The PAFTA contains chapters specially focused on small and medium-sized enterprises (SMEs) and provides them with development opportunities.


(END) DOP/MDV/MVB

Published: 2/11/2020
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