Today the Free Trade Agreement (FTA) between Peru and Australia, which was signed on February 12, 2018. This agreement, according to the Ministry of Foreign Trade and Tourism (Mincetur), will allow 96% of the products that Peru exports to Australia to enter without paying duty.
This includes products such as frozen seafood, coffee beans, quinoa, fishmeal, cocoa, canned olives, canned asparagus, cotton garments, canned tuna, sweet and savory biscuits, canned fruits, chemical supplies, glasses temperate, among others.
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Along these lines, Carlos González, director of the CIEN-ADEX Global Business and Economics Research Center, points out that Peru has the potential to export products worth up to US $ 2.2 billion to Australia. This figure would represent an increase of 2,390% compared to 2019 (US $ 92 million).
“To reach that potential requires enormous work from both the public and private sectors,” he said.
This increase would be supported, according to González, in an increase in exports of agricultural products, chemicals and metal mechanics.
During the last year, the products that Peru most exported to Australia were lead minerals; fish fats, flour and oils; Uncaffeinated and unroasted coffee.
AGROEXPORT
Meanwhile, Rafael Zacnich, chief economist at ComexPerú, indicates that Some Peruvian products could be attractive to the Australian market, especially in the agricultural sector. That way, it could compete with some countries in the region that are business partners of that country.
“Chile and Colombia would be our main competitors in this market. With this FTA, the field of access would be balanced. With that we could be quite attractive in some sectors, especially in which in Peru it is more competitive, such as agriculture, ”said Zacnich.
For its part, the Ministry of Agriculture and Irrigation (Minagri) indicated that the duty-free entry of almost 100% of Peruvian agricultural products to Australia, will contribute to meet the goal of US $ 8,000 million in food sales abroad at the end of 2020.
Jorge Montenegro, head of Minagri, said that the main agricultural export products that will enter Australia duty free They are coffee, quinoa, canned asparagus, wood, cocoa beans, cocoa powder, cocoa butter, chocolate bars, maca flour, cochineal carmine, fresh garlic and frozen mango.
On the other hand, Elvis García, general director of agricultural policies of the MinagriHe explained that in the case of products considered very sensitive, such as powdered milk, sugar, rice and hard yellow corn, a tariff-free quota system is foreseen; in such a way that if this quota is passed, the Price Range system will be applied.
IMPORTS
As for the imports, more than 93% of Australian products may enter Peru duty free, says Sayuri Bayona, Deputy Minister of Foreign Trade.
“This will allow our industry and consumers to import, at competitive prices, products such as heavy machinery, medicines for human and animal use, medical supplies, chemical supplies, inputs for electrical products, 4×4 vehicles and orthopedic devices,” says Bayona.
For its part, Zacnich adds that with this agreement Peruvians will be able to access different types of meat, dairy, wheat, wine, as well as financial and educational services.
It is worth mentioning that during 2019, Peruvian imports of products from Australia totaled US $ 114 million.
The five products that Peru most demanded were cyanide, parts of machines and appliances for washing or separating, rolls of papers, as well as spoons, shovels and tongs.
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