The Australian Government’s speedy finalisation of a free trade agreement (FTA) with Peru will create significant new opportunities for Australian mining and mining services exports and investment in this key South American economy.
Mining already provides more than half of Australia’s export earnings and the FTA will open the way for further export growth into the future, supporting jobs and living standards in Australia.
The trade deal will immediately eliminate tariffs on Australian minerals commodities exports to Peru, including iron ore, copper, nickel and coal.
It will make our metals manufactures exports more competitive by locking in duty free access for Australian iron, steel and aluminium.
A particularly exciting aspect of this FTA is that it improves market access for Australian mining equipment, technology and services (METS) businesses.
Most Australian mining equipment will now not face any tariffs when exported to Peru.
Peru has also agreed to deliver access to Australian mining services providers on non-discriminatory terms and to boost investment certainty for Australian businesses investing in the South American nation.
These measures will allow Australia to leverage its world-class expertise in mining services – from geoscientific and engineering services to specialised technology and environmental management services – to take advantage of opportunities in developing Peru’s own significant minerals and energy resources.
Finalisation of the Peru-Australia FTA will also deliver strategic benefits by improving economic and political links across the Pacific and by demonstrating both countries’ commitment to free trade and open markets.
It comes as new economic modelling has shown that 2.2 million Australian jobs rely on trade and that the dismantling of protectionism over the last three decades has boosted the average Australian household’s income by $8,448 a year.
This highlights the importance of Australia continuing to pursue trade liberalisation through bilateral negotiations like those with Peru as well as regional, plurilateral and multilateral trade agreements.