International Trade: Australia Moves Closer to Free Trade Agreement with Peru
Australian beef, dairy and sugar producers are getting excited at the prospect of a Free Trade Agreement (FTA) between Australia and Peru. Negotiations for the FTA were launched on the 24th of May and are expected to continue for the following months until an agreement is reached.
Currently, Australia and Peru do not have high rates of trade. This is not due to a lack of quality production, but is attributed to the high tariffs enforced by both governments; discouraging trade between the two nations. However, this will soon change as the negotiations come to an end, offering better incentives for Australian investors wanting to do business in Peru and other countries in Latin America.
Peru Investment Opportunities for Australian Investors
Those unaware of Peru´s economic/commercial situation may not realize the amount of investment opportunities available for foreign investors. Peru has always been a popular destination for Australian mining companies and with the possibility of a FTA between the two nations, the opportunities for international trade has increased.
Increases in exports will benefit a range of Australian industries, notably beef, horticulture and wine. One market that is showing great potential is the exportation of kangaroo meat. This opportunity is due to a combination of large scale production by Australian farmers and the fact that kangaroo meat would be a niche market in Peru.
These international trade opportunities, combined with the fact that Peru is an extremely attractive market for foreign investment, has resulted in an increase in the number of Australians choosing to do business in Peru. The Peruvian market has seen a growth in foreign start-ups such as company formations and incorporations; strongly encouraged by pro-investment government policies. Australian investors, along with foreigners from all corners of the globe are looking towards the business opportunities now available in Peru.
Why You Should Do Business in Peru
Peru has seen strong economic growth over the past years, and this trend is expected to continue. In addition to this strong economic growth, Peru is a stepping stone for access to other attractive markets in Latin America such as Colombia. Apart from the obvious economic benefits this FTA would bring to both nations, it also opens up work, travel and study opportunities.