by Mary Swire, Tax-News.com, Hong Kong
09 November 2017
Australia and Peru confirmed that they will sign a free trade agreement, in an announcement at the ongoing APEC ministers’ meeting.
It is said that the deal will eliminate trade taxes on 99 percent of Australian product lines to Peru, slashing the current prohibitively high tax burden.
The deal will therefore significantly decrease the taxes that Australian exporters face when supplying goods to Peru, most notably agricultural sector exports like beef and dairy and mining capital goods.
Announcing the launch of FTA negotiations in May 2017, Australia’s Trade Minister, Steven Ciobo said: “Many of Australia’s exports to Peru are blocked by high tariffs that this FTA will seek to eliminate. Australian dairy and sugar exports currently attract tariffs of up to 29 percent, beef exports face tariffs of up to 17 percent, and sheep meat, wheat, rice, and wine also face tariff barriers. The United States, the European Union, and Canada all have FTAs that give them preferential access to Peru. PAFTA will help Australian farmers compete and break into this growing market.”
Published at Wed, 08 Nov 2017 19:00:00 -0500