Andina

Peruvian products get ready to enter Australia tariff-free

09:13 | Lima, Feb. 5.

The Free Trade Agreement between Peru and Australia will enter into force on February 11, the day on which a large part of our products will be allowed to access that market free of tariffs, the Association of Peruvian Exporters' (ADEX) Center for Global Economy and Business Research has affirmed.

As a result of this commercial alliance, 96% of Peruvian products will enter the Oceanic country without paying tariffs, while 93.3% of Australian goods will enter the South American nation under the same conditions.

The Senior Policy Development Analyst at the research center Nancy Arrelucé highlighted the importance of this agreement for both countries, taking into account that bilateral trade has doubled over the last 10 years.

"Australia was ranked as Peru's 35th trading partner in 2019. However, shipments have been falling over the last three years due to the high dependence on the mining sector, so we must take full advantage of this commercial alliance, especially for products with added value," she told Peru Exporta weekly newsletter.

Commercial potential

According to the analysis on untapped opportunities, Peruvian exports —with added value— to Australia during 2020 may reach a maximum of US$2.2 billion.

Arrelucé said that —while the objective is ambitious— the important thing is to diversify our offer in the process, considering the healthy economy of that country, which is far superior to those of other destinations.

"Its external demand increased by 40% during the last decade. Besides, it has a GDP per capita of more than US$50,000, and by 2022 it may see 30 years without economic recession. With these data, it is placed above the Netherlands, Sweden, Austria, Finland, and Germany," she underlined.

On the other hand, the ADEX officer highlighted the potential of some products that would benefit from the FTA this year such as: unroasted or decaffeinated coffee, fishmeal, asparagus, fish oils, sodium hydroxide, grapes, and avocados, among others.

(END) SDD/MVB

Published: 2/5/2020