Peru Australia FTA slashes over 99% of agriculture export tariffs
Producers across Capricornia in the grains, red meat, and horticulture sectors will have their tariffs to Peru slashed following today’s historic signing of the Peru-Australia Free Trade Agreement (PAFTA).
Michelle Landry, the tenacious Member for Capricornia, said PAFTA will eliminate 99.4 per cent of tariffs that exporters face into Peru, putting Australian farmers on equal footing with foreign competitors.
“This new trade deal is a huge win for farmers and graziers right across Central Queensland, creating expanded export opportunities for our beef, sugar, grains, and horticulture sectors,” Ms Landry added.
“This is fantastic news, putting more cash in the pockets of our hard-working farmers while building on our $435 million two-way trade with Peru.”
The key tariff outcomes for Australian agriculture through PAFTA will include;
Immediate elimination of all tariffs for seafood, most horticulture products, and wheat (current tariffs are up to 9 per cent).
Elimination of all tariffs for beef within five years (current tariffs are up to 17 per cent).
PAFTA will provide a number of industries with duty-free access for large volumes of exports, including:
30,000 tonnes of sugar, growing to 60,000 tonnes in year five and to 90,000 tonnes by year 18.
7000 tonnes of dairy, growing to 10,000 tonnes (capped amount) in year five.
15,000 tonnes of sorghum, with the volume growing to 20,000 tonnes (capped amount) in year five.
“PAFTA will allow us to better compete in the Peruvian market and supports the potential for expanded trade into the broader Latin American region.
“The growth potential this new agreement provides is great news for every producer in Central Queensland and further strengthens the case for developing major infrastructure like Rookwood Weir.” Ms Landry said.
The signing of PAFTA follows the finalisation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which will lock in greater trade access to markets worth almost $10 trillion combined, including Japan, Canada, Mexico, Malaysia, Singapore, Chile, Peru, Vietnam, New Zealand and Brunei.
For more on PAFTA, visit http://dfat.gov.au/trade/agreements/pafta/Pages/peru-australia-fta.aspx
Peru-Australia Free Trade Agreement (PAFTA) signed today
99.4 per cent of tariffs that Australian exporters face into Peru will be eliminated
It will deliver historic export opportunities for Australia’s key agricultural industries