Peru and Australia commemorate three years of Free Trade Agreement

Three years after the entry into force of a Free Trade Agreement, Australia has become the main destination for Peruvian exports to Oceania.

Peru exports fishing (52%), agricultural (28%), and chemical (8%) goods to the country down under. Similarly, it imports inputs (73% of the total) from said nation.

Australia is a market of great opportunities. The variety of goods currently being imported by the main economy in Oceania translates into countless alternatives for Peruvian exporters —namely those linked to agricultural chains.

According to data from the Peruvian Ministry of Foreign Trade and Tourism (Mincetur), Australia annually imports agricultural products worth around US$15 billion.

In this sector, there is still great potential to be covered by products such as cacao, its derivatives, and unroasted coffee. Within this framework, Peru’s participation in the Australian market accounts for less than 5%.

In the same way, there are 18% of goods that Australia buys from the world and that Peru, despite relying on an exportable supply, does not yet trade with said country.

“Australia is an attractive market for our exporters, and we will continue to work so that more companies can take advantage of the benefits from this trade agreement. As of this year, Australia has eliminated 100% of its tariff lines, and this grants us significant preferential access,” Peru’s Foreign Trade and Tourism Minister Luis Fernando Helguero stressed.

Besides, there are many growth opportunities for exporters related to the textile and chemical industry. For example, Peru produces goods such as cotton bed linen and bras —products that Australia has bought from the world for a value of US$194 million.

Regarding the chemical sector, Peru exports medicines, tires, and printing ink —goods that Australia has imported for US$5.200 billion, US$2.213 billion, and US$176 million, respectively.

It should be noted that, thanks to the Peru-Australia Free Trade Agreement, products such as canned asparagus, canned tuna, fresh grapes, Pisco, cotton t-shirts, well-worked marble, cotton garments, among others, enter Australia without paying tariffs.

The agreement also establishes an unrestricted framework for the export of services, such as those related to mining, education, software design, and more.

It should be noted that 270 Peruvian companies exported their goods to Australia in 2022 —an increase of 3% compared to 2021.

Around 40% of them are micro, small, and medium-sized enterprises.

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