Autumn 2018 Update

Latin America is open for business. During a period when certain economies are becoming increasingly protectionist, others are embracing the opportunity to leverage the benefits of global trade through the expansion of networks created by free trade agreements.

Australia and key Latin American markets have demonstrated their commitment to free trade with several agreements under negotiation or signed in recent months, broadening opportunities for Victorian companies.

In February, the Peru Australia FTA (PAFTA) was signed by Australia’s and Peru’s Trade Ministers. In March, Australia signed the Trans-Pacific Partnership 11, which brings together eleven countries, including Australia, Chile, Mexico and Peru among other key Asia-Pacific countries. In late March, the third round of Pacific Alliance FTA negotiations was held in Chile. The Pacific Alliance, comprising Chile, Colombia, Mexico and Peru extends Australia’s FTA network to Colombia, a country undergoing significant changes following the peace deal between the Colombian government and the Revolutionary Armed Forces of Colombia (FARC), which brought an end to 50 years of conflict.

These agreements present opportunities for Victorian companies and institutions:

  • The PAFTA provides improved market access for Victorian farmers, dairy producers and processed food suppliers as well as METs companies.
  • TPP-11 builds on Australia’s existing agreements with Chile and Peru by providing a pathway for further business opportunities with Mexico, Victoria’s largest trading partner in Latin America.
  • The four countries of the Pacific Alliance, together, account for 37 per cent of Latin America's population, 35 per cent of its nominal GDP, 46 per cent of its exports, and 50 per cent of its total imports, again offering an opportunity to facilitate business for Victorian companies across all four markets.

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