The new Peru-Australia Free Trade Agreement (PAFTA), introduced last week, will eliminate Peru’s 99.4pc tariffs on Australian resources, including nickel and iron ore.

 

Additionally, barriers for Australian mining equipment, technology and services (METS), as well as trade costs, will also be reduced. 

The Australian mining industry now has the opportunity to benefit from new export markets and investment opportunities, which will abet the creation of highly skilled and well-remunerated jobs.

 

Mining commodities and METS represented 80pc and $438mn of Australia’s Peru-bound exports in 2018-19, which totaled $478mn. Among other things, Australian miners invested heavily in exploration and operational activities in Peru.

 

While PAFTA will prove advantageous for Peru’s burgeoning middle class, the trade agreement is touted as a way to establish greater stability and economic growth in both nations.

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