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.
Summer 2018 Update
The new Victorian Government Trade and Investment office in Santiago, Chile; launch of Latam’s direct flight between Melbourne and Santiago and the negotiation of Free Trade Agreements (FTA) with Peru as well as the Pacific Alliance have paved the way for enhanced trade and investment ties between Victoria and Latin America.
In 2018, Victoria’s Minister for Trade and Investment will release the government’s Latin America Trade and Investment Strategy, which will outline the key markets and priority sectors that align with Victoria's capabilities.
Opportunities for Victoria:
- Our enhanced presence on the ground will help Victorian businesses gain market intelligence and enter or expand their trade activity with Latin America through the office’s key relationships with the businesses sector and governments in-market.
- Improved air links will drive increased two-way travel by businesspeople, tourists and students as well as family and friends.
- The rapid conclusion of the Australia-Peru FTA negotiations will facilitate market access for Victoria's METS, infrastructure and Agtech companies as well as food and beverage exporters. Plans to conclude negotiations of the Australia-Pacific Alliance FTA in 2018 will multiply these opportunities with key markets that are open for business.