According to the Minerals Council of Australia (MCA), the Australian Government’s finalisation of a free trade agreement (FTA) with Peru will create significant new opportunities for Australian mining and mining services exports and investment in this key South American economy.
Mining already provides more than half of Australia’s export earnings and MCA believe that the FTA will open the way for further export growth into the future, supporting jobs and living standards in Australia.
The trade deal will immediately eliminate tariffs on Australian minerals commodities exports to Peru, including iron ore, copper, nickel and coal. It will make metals manufactures exports more competitive by locking in duty free access for Australian iron, steel and aluminium.
According to MCA, a particularly exciting aspect of this FTA is that it improves market access for Australian mining equipment, technology and services (METS) businesses.
Most Australian mining equipment will now not face any tariffs when exported to Peru.
Peru has also agreed to deliver access to Australian mining services providers on non-discriminatory terms and to boost investment certainty for Australian businesses investing in the South American nation.
These measures will allow Australia to leverage its world-class expertise in mining services – from geo-scientific and engineering services to specialised technology and environmental management services – to take advantage of opportunities in developing Peru’s own significant minerals and energy resources.
MCA indicated that finalisation of the Peru-Australia FTA will also deliver strategic benefits by improving economic and political links across the Pacific and by demonstrating both countries’ commitment to free trade and open markets.