The Peru-Australia FTA entered into force on 11 February 2020, providing businesses a gateway to Latin America and strengthening our economic relationships within the region.
The Peru-Australia Free Trade Agreement (PAFTA) entered into force on 11 February 2020. This agreement provides Australian businesses a gateway to Latin America, strengthening our economic relationships within the region and helping facilitate value chains between the Americas and Asia.
Peru has been one of the fastest growing economies in Latin America over the last decade. In 2018-19, Australia's two-way trade with Peru was worth $656 million. PAFTA enables Australian businesses to take advantage of this growing market and strengthens our economic relationships with South America as a whole.
By removing barriers to trade and investment, PAFTA makes doing business between our two countries easier. Under the agreement, Australian exporters to Peru gain substantial new trade and investment opportunities. For example, Australian beef, sugar and dairy farmers obtain historic access to the Peruvian market. The deal also secures new quotas for Australian dairy, rice and sorghum free from tariffs. PAFTA provides Australian service providers a more transparent and predictable operating environment in Peru, and a platform for both countries to increase the value of our bilateral services trade. Investment commitments in the agreement protect and enhance investments in both directions.
Importers should note that a claim for preference under PAFTA must be supported with a Certificate of Origin (COO) (self-certified). For those that are Trusted Traders, however, the Australian Border Force (ABF) has waived the requirement for the production of a COO.
Like many trade agreements, the consignment rules mean the FTA does not apply where the goods enter a third country and do not remain under customs control. This needs to be considered if the goods have travelled from Peru to a different South or Central American port, and not remained under Customs control.
Advice on Rules of Origin for this, and other Trade Agreements, is available in PDF format from the Australian Border Force. Click HERE for more information.
As licensed Customs Brokers and International Freight Forwarders, Colless Young can offer you correct advice on trade and shipping for all your international transactions. We are based in Brisbane and handle cargo, both import and export, at all major ports and airports around Australia.