A chance not to be missed: Farmers engage in free trade talks with Latin America
25/7/2017
Business and agriculture teams for the first time engage themselves in a progressive dialogue for free trade agreement with Latin America nations, forecasting a large windfall for farmers and exporters alike.
Business and agriculture teams engage themselves in a progressive dialogue for free trade agreement with Latin America nations, forecasting a large windfall for farmers and exporters alike.Trade Minister Steven Ciobo declared the beginning of the free trade talks with Latin American countries Mexico, Peru, Chile, and Colombia with the aim to decrease limiting high taxes in the Pacific Alliance trading region.
Farmers are setting their visions on the nations’ combined population of approx. 224 million which was previously not targeted as an export market, despite regions imports of $780b in goods and services the previous year.
The portion of the pie for these four nations combined is nothing but impressive, as Fiona Simon, National Farmer’s federation president laid out.
She also added that this was a great thing for agriculture and and Australia if they managed to formulate things properly.
Any type of agreement would include large drops in import tariffs. For example, Australian Beef will be subject to a fall by 80%, dairy produce 45% and sugar over 30%.
An FTA agreement will help remove the large stop gaps of tariff prices and make sure that Australian firms are gaining a more competitive exposure as Mr Ciobo said.
Together with New Zealand which also started engaging in talks the previous weekend, Australia will become one of the first nations to go after an FTA Agreement with the Pacific Alliance.
Launched in 2012, the tariff charges between the state members were trimmed significantly and are expected to drop down to almost zero over the next 3 years.
Australia's effort to make a deal is coming after the previous failure of the Trans-Pacific Partnership which involved Mexico, Peru, and Chile as well.
The 11 countries that remained pledged to save the TPP at a conference in May following Trump’s decision to withdraw his country’s participation in the agreement.
Ms Simson had commented that the TPP has been at all times their first target, but currently this opportunity seems more viable and realistic.
She was especially excited about the Mexican market prospects in a period of tense relationship between US and Mexico following Mr. Trump’s plans to build a wall on the borders.
Jennifer Westacott, Chief Executive of Business Council of Australia had forwarded her congratulations to the government for their commitment to collaborate with developing yet progressive countries at a period when other countries were doubting the privileges of free trade. Those who export aluminum products, drugs, and paper are also expected to reap benefits from penetration to Latin America markets, Ms Westacott has commented.
Australia has been one of the most vivid supporters of free trade in a global level in period of so-called financial national protectionism projected by Donald Trump’s America first plans and UK brexit vote.
The Turnbull government is also examining the prospects of making agreements with Hong Kong, EU and Indonesia, even though talks are not yet officially set.
Mr Ciobo had reported to the ABC that an agreement with the Pacific Alliance bloc could be possible in just 12 months, but ultimately it boils down to the quality aspect of the agreement rather than how fast it can be achieved.
