PAFTA enables Australian companies to tap into this growing market and strengthens our economic relationship with Latin America. Clack said that despite these challenges, there are opportunities for South American sugar producers working in another season. The two business-friendly countries understand the value of foreign investment to strengthen the economy and stimulate local economic growth. Following the signing of the PAFTA, the two countries hope to join the table with other regional multilateral trade agreements (such as the Pacific Alliance) to enhance their attractiveness to international investors. Over the past decade, Peru has been one of the most dynamic economies in Latin America. In 2018-19, Australia`s two-way trade with Peru was $656 million. Peru offers Australian exporters a growing chance that this free trade agreement will help unlock it. Over the past decade, Peru has been one of the fastest growing economies in Latin America and the world, with an average annual GDP growth of 5.9% (2005-2015). The Turnbull government is seeking a high-quality global free trade agreement with Peru to open up new markets for Australian exporters that will create more Australian jobs. This is good news for companies moving to Australia and Peru or considering new export opportunities. This agreement guarantees Australians more with the powerful Latin American country than a more uniform and stable trading environment.
In the long term, both economies are committed to ensuring the success of companies in cooperation with and between countries. Peru is also another investment site for Australia. The number of Australian companies operating in Peru has increased from 10 in 2003 to more than 90. Australia`s new engagement with Peru offers Australian companies the opportunity to expand with this emerging market. The mining sectors, for example, are already closely linked and deepen their cooperation. “These types of trade agreements are very important because Australia is a very inexpensive sugar producer, but market access is a problem and subsidized production around the world is a problem,” he said. During the negotiations, I invite stakeholders to present their views on the specific trade and investment barriers that the pafta could address. For more information about the submission, click here. “There has to be a reform of the sugar trade so that we can benefit from our competitive advantage in sugar production.” The Australian mining industry has access to new export markets and investment opportunities with the Peru-Australia Free Trade Agreement (PAFTA) which came into force today.
The interests of countries participating in a trade agreement are clearly motivated by the desire for sustained economic growth.