A Free Trade Agreement (FTA) with Peru could open up new markets for exporters across the North, creating more jobs and growing the local economy, Northern based Government Senator Ian Macdonald said today.
Senator Macdonald said the Turnbull Government is currently seeking to establish a high quality, comprehensive Free Trade Agreement with Peru in a bid to create more jobs and open new markets.
“Over the last decade, Peru has been one of the fastest growing economies in Latin America, and the world, with annual GDP growth averaging 5.9 per cent (2005-2015),” Senator Macdonald said.
He said many of Australia’s exports to Peru are currently blocked by high tariffs that the FTA will seek to eliminate.
“The north’s biggest export markets, such as beef, currently face tariffs of 17 per cent, and up to 29 per cent for sugar, Senator Macdonald said.
The United States, the European Union and Canada all have FTAs that give them preferential access to Peru.
“This Free Trade Agreement will help northern beef and sugar producers compete and break into this growing market,” Senator Macdonald said.
Services exporters could also benefit from an FTA, Senator Macdonald said, as Peru is increasingly looking offshore for specialised services.
“Our northern expertise in key growth sectors such as education, health and tourism are well suited to meet this demand,” Senator Macdonald said.
An FTA with Peru would be another gateway to Latin America, improving Australia’s economic relationship with the region and enabling businesses across the North to tap into value chains between the Americas and Asia.
“The more we are exporting here in the North, the more local jobs we are creating, building our regional economy and strengthening local communities.”