The entry into force of the Free Trade Agreement (FTA) with Australia, starting today, will contribute to meeting the goal of 8,000 million dollars in agro-exports by the end of 2020, the Ministry of Agriculture and Irrigation (Minagri) indicated today.
He said that this agreement will allow almost 100% of Peruvian agricultural products to enter that oceanic country without paying tariffs.
Likewise, the minister of the sector, Jorge Montenegro, pointed out that the goal of achieving 8,000 million dollars in food exports to the world this year is the previous step to reach the 10,000 million dollars estimated for the bicentennial.
The FTA with Australia allows 96% of the Peruvian exportable supply to enter the oceanic giant free of the payment of tariffs, which in the case of agricultural products is almost 100%.
On the other hand, 93.3% of Australian products will enter Peru under the same conditions.
Likewise, the trade agreement will make it possible to take advantage of new commercial opportunities and guarantee that sanitary and phytosanitary procedures are transparent and efficient; At the same time, the movement of Peruvian technicians and professionals to Australia will be favored.
Also read: Peruvian agro-exports were around US $ 7.5 billion at the end of 2019
Small producer
Unlike other trade agreements, the FTA signed with Australia seeks the increasing incorporation of small producers in promoting bilateral trade, said Minagri.
"Proof of this is that for the first time a chapter on Small and Medium Enterprises (SMEs), Competitiveness and Business Facilitation is included, which contributes to the development of the country," he emphasized.
He also highlighted that the main agricultural export products that will enter Australia duty-free are coffee, quinoa, canned asparagus, molded woods, cocoa beans, cocoa powder, cocoa butter, chocolate bars, maca flour, carmine cochineal, fresh garlic and frozen mango.
"With projection of access to avocados, olives and cashew nuts, among others, that would represent a great opportunity for small and medium-sized Peruvian producers", Minister Montenegro stressed.
Trade exchange
For his
part, the general director of Agrarian Policies of Minagri, Elvis García,
stressed that, at present, the commercial exchange of agricultural products
between Peru and Australia is quite modest.
According to estimates from the Agriculture sector, agro-exports to that country with the implementation of the FTA would increase by 10% in a period of five years, which would represent a very substantial increase that would result in the improvement of agricultural activity.
"For which a very serious job of developing markets and products must be carried out," he said.
Pisco
The free trade agreement also contemplates that Australia will not allow the sale of Pisco Peru unless it has been prepared in Peru, in accordance with the laws and regulations of our country, relative to its preparation, and applicable rules for its consumption, sale and export.
Data:
• The Peru - Australia Free Trade Agreement was signed on February 12, 2018 in the city of Canberra, Australia.
• Apart from the bilateral FTA (PAFTA), Peru and Australia are also part of the new Pacific Basin Partnership Agreement, formerly known as TPP11.
• Peru becomes the second South American country to sign an FTA with Australia, after Chile. Likewise, Australia has expressed its interest in joining the Pacific Alliance, an agreement that brings together Chile, Colombia, Mexico and Peru.
• Australia has one of the fifteen most important economies in the world, standing out for having almost 30 years without an economic recession. Its consumer demand amounts to 25.2 million inhabitants and its GDP per capita is more than 50,000 dollars.
