Australian wine and sugar to hit Peru thanks to new free trade agreement
A new free trade agreement between Peru and Australia is set to benefit Australia’s wine and sugar exporters.
Benefits to wine industry
The Winemakers Federation of Australia have welcomed the agreement that comes into effect within five years and eliminates the 9 per cent tariff on bottled win exports into Peru.
Winemakers Federation Australia (WFA) Chief Executive, Tony Battaglene, said multiple industries would benefit from the agreement.
“We have been at a competitive disadvantage in Peru because exports from the United States, Canada and European Union have been enjoying duty-free access under various trade deal,” Battaglene said.
Free trade agreements are seen as important in removing trade barriers and giving exporters a level playing field globally, according to Battaglene.
“All credit must go to the Australian Government in continuing its expansive Free Trade agenda,” Battaglene said.
Benefits to sugar industry
Chairman of Canegrowers Australia, Paul Schembri, said under the agreement Peru has agreed to market access for Australian sugar under terms it has never granted to any other country.
The new access to Peru is 30, 000 tones per year from the first year of the agreement increasing to 60, 000 tonnes in year six and 90, 000 tonnes in year 18.
“While the initial amounts of raw sugar Peru may purchase are small compared to our annual production of more than 4.5 million tonnes, the FTA will enable Australian exporters to establish and grow commercial relationships with refiners in Peru which has one of Latin America’s fastest growing economies,” Schembri said.
With a population of approximately 32.1 million, Peru’s largest current trade partners are China and the U.S.
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