Simon Birmingham (SA, Liberal Party, Minister for Trade) Share this | Hansard source

I thank Senator Brockman for his question and his advocacy for regional Australians and Australian farming businesses in terms of access under our network of free trade agreements. Overnight the Peru-Australia Free Trade Agreement entered into force. This is a very strongly negotiated positive agreement for Australia, with over 99 per cent of all tariffs on Australian goods to Peru ultimately being eliminated, expanding on the outcomes negotiated as part of the Trans-Pacific Partnership.

Peru has been one of the fastest-growing economies in Latin America, and at times in the world, over the last decade. Whilst Peru is relatively unknown to many Australian exporters in terms of details, it has a growth domestic product comparable to that of Vietnam. It has high rates of GDP growth and a population in excess of 31 million people. Peru provides a similar consumer base to that of Malaysia, a longstanding trade partner of Australia. This FTA places Australia in a strong position to share in Peru's continued economic growth, providing opportunities to expand our engagement into the future.

PAFTA provides new opportunities to Australian farmers, with zero tariffs on beef within five years, giving the same access into Peru that US farmers already have. PAFTA provides our sugar farmers with better access to sell sugar than Peru has provided to any other sugar-exporting country in the last 20 years. Australian dairy farmers have historic new access to Peru, with zero tariffs from day one under PAFTA for 7,000 tonnes initially, increasing to 10,000 tonnes, of product. There is immediate duty-free access for Australian wine, sheep meat, most horticultural products, kangaroo meat and wheat under PAFTA. Manufacturers benefit, as do our services in the education sector—all with improved access outcomes, thanks to the entry into force of PAFTA overnight.