On the one year anniversary of the signing of the Peru-Australia Free Trade Agreement (PAFTA), the Minerals Council of Australia issued a statement saying that the ratification of the deal is expected to deliver major investment and job opportunities for Australia's mining industry.
"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 statement reads. "Australian mining commodities and mining equipment, technology and services (METS) dominate the A$640 million trading relationship with Peru. In 2017, seven out of the top eight of Australia's largest merchandise exports to Peru were METS or mining commodities."
PAFTA provides duty-free access across all tariff lines for steel, aluminium, and base metals.Besides the economic benefits for both countries, the MCA said it is important to highlight the fact that the deal provides greater certainty and stability around the two-way investments already taking place between Australia and Peru.
In detail, PAFTA provides duty-free access across all tariff lines for iron, steel, aluminium, base metals, mining equipment/machinery and parts.
When it comes to METS and oilfield service providers, the agreement stipulates that Peru should grant access, on non-discriminatory terms, to Australian suppliers of mining-related consulting, research and development, engineering, environmental, mining and technical testing and analysis services.
"In 2017, Australia investment in Peru stood at over A$600 million, with Australian mining companies making major investments in exploration, operational mining activities and partnerships with local resource companies," the Minerals Council's brief reads. "PAFTA will directly benefit Peruvians and Peru's business community along with creating more Australian jobs and supporting local business."