PERTH (miningweekly.com) – The Minerals Council of Australia (MCA) has welcomed the enforcement of the Peru-Australia Free Trade Agreement (PAFTA), providing Australian businesses with a gateway to Latin America.
Under PAFTA, Peru will eliminate 99.4% of its tariffs, including on valuable Australian resources such as iron-ore, copper, nickel, coal, mineral fuels and oil.
The agreement also removes barriers for Australian mining equipment, technology and services (METS) and reduces trade costs through more streamlined customs and administrative arrangements.
MCA CEO Tania Constable said on Wednesday that this new access for Australia’s minerals industry would drive exports and help create new highly skilled and high paid jobs.
“Australian mining commodities and METS dominate the $656-million trading relationship with Peru. In 2018-19, eight of the top ten of Australia’s largest merchandise exports to Peru were METS or mining commodities.
“With Peru's rapidly growing middle class, there is significant opportunity to rapidly grow Australia’s economic relationship with Peru through PAFTA,” she said.
In 2018, Australia investment in Peru stood at $716-million, with Australian mining companies making major investments in exploration, operational mining activities and partnerships with local resource companies. PAFTA will help grow two-way investment, as the agreement provides greater certainty and stability.