WT/REG404/M/1  
 
13 April 2021 
(21-3058) Page: 1/3 
Committee on Regional Trade Agreements  
Ninety -ninth  Session    
 
  
FREE TRADE AGREEMENT BETWEEN PERU  AND AUSTRALIA  
(GOODS AND SERVICES)  
NOTE ON THE MEETING OF  22 MARCH  2021 
Chairm an: Ambassador H.E. Mr. Mārtiņš KREITUS (Latvia)  
1.1.  The 9 9th Session of the Committee on Regional Trade Agreements (hereinafter  "CRTA " or the 
"Committee ") was convened in Airgram WTO/AIR/RTA/ 24/Rev.1  dated 12 March  2021. 
1.2.  Under Agenda Item D.II of the Session, the CRTA considered the Free Trade Agreement  
between Peru and Australia , goods  and services  (hereinafter  "the Agreement").  The Chairman  stated 
that the Factual Presentation had been prepared by the Secretariat on its own responsibility in full 
consultation with the Parties, in accordance with paragr aph 7(b) of the Transparency Mechanism for 
Regional Trade Agreements (document WT/L/671).  
1.3.  The Chairman  indicated that t he Agreement had entered into force on 11 February 2020. It 
had been notified on 24 June 2020 under Article  XXIV:7(a) of the GATT  1994 (document 
WT/REG404/N/1) and under GATS  Article  V:7(a) (S/C/N/1015) as an agreement establishing a free 
trade area within the meaning of  Article XXIV of GATT 1994 and Article V of GATS.  The text of the 
Agreement was available, together with its Annexes, on t he Parties' official websites.  The Factual 
Presentation on the goods and services aspects (document  WT/REG404/1 dated 8 January 2021) 
and questions and replies on this Agreement (document WT/REG404/2 dated 9 March 2021) had 
been distributed.   
1.4.  The represent ative of Australia  thanked the Members for the opportunity to make opening 
remarks on the Agreement . She also thanked the Secretariat for drafting the factual presentation 
which  had contributed to the important goal of transparency.  The Agreement  had entered into force 
on 11 February 2020 and  had been notified on 24 June 2020 to the WTO . Australia remain ed 
committed to transparent notification of all its free trade agreements , includ ing negotiation, 
conclusion and implementation , which it undert ook consistent with WTO rules.   
1.5.  The Agreement was a comprehensive, high standard agreement that would open new markets 
for Australian and Peruvian exporters and greater competition for consumer s, increasing positive 
economic outcomes for the people in both countries. It provide d a gateway to Latin America  for 
Australia , strengthening the economic relationship between the Parties and within the region and 
helping facilitate value chains between t he Americas and Asia . 
1.6.  The Agreement met all the criteria of a high -quality agreement that promote d growth in goods 
and services trade . It was fully consistent with WTO principles and rules , it deliver ed WTO-plus 
outcomes , was comprehensive and provid ed substantial liberalisation across all sectors.  It met the 
WTO threshold requirement that an agreement should cover “substantially all trade” between the 
parties . It eliminate d more than 99 per cent of tariffs within five years of entry into force .  
1.7.  The Agreem ent feature d new trade rules for the use of Australian merino wool in supply chains, 
additional market access on base metals, coals, mineral fuels and mineral oils and new market 
outcomes for manufactured goods including paper and paperboard, pharmaceutica l and medical 
devices . It also addresse d non-tariff barriers and ensure d efficient customs settings, particularly 
across education, mining equipment technology and services and other services trade.  WT/REG404/M/1  
 
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  1.8.  The Agreement contain ed WTO-plus outcomes on services . Both parties  had made various 
improvements over their commitments under the WTO, covering a wide range of sectors such as 
sugar and dairy market access , professional services , mining equipment, technology and services 
and oi lfield service providers , financial services , telecommunications services , health services , 
hospitality and tourism services , government procurement , education and  the temporary entry of 
business people.  
1.9.  It also include d measures which assist ed companies d oing business in Australia and Peru, 
including  facilitative arrangements for business travel as well as provisions to facilitate access to 
each other's government procurement markets, effective protection of intellectual property rights 
and promotion of co mpetition ,  enhanced regulatory coherence , a transparent mechanism for 
consultations and settlement of possible disputes arising under the Agreement  and modern e -
commerce rules that, among other things, remove d impediments such as local data storage 
requir ements and customs duties imposed on electronic transmissions.  
1.10.   She thanked colleagues from Peru for their cooperation in preparing for the review  and their 
business -like approach during negotiations. She also thanked Members for their questions . She 
welcome d further comments from Members and look ed forward to the discussion  in the CRTA 
Session . 
1.11.   The representative  of Peru thank ed the WTO Secretariat for its hard work in drafting the 
factual presentation of the A greement, the Members that had sent their questions  in advance  and 
the colleagues from Australia for their cooperation during the review.  
1.12.   The A greement was a comprehensive , modern, and high standard agreement. The 
negotiation s had been concluded in 6 months, which confirmed the interest of both countries to 
integrate their markets , and there had been  active participation with the Peruvian public and private 
sectors.  It had allowed both countries to open up substantial new trade and investment 
opportunities, promote job -creating growth, integrate their economies in a fast-growing market and 
help facilitate value chains between the Americas and Asia.  
1.13.   Concluding agreements such  as the one under consideration, contribute d to the goals and 
activities included in Peru's national strategic export plan, aimed at contributing to the consolidation 
of economic integration processes, facilitating the insertion of Peru's producers into in ternational 
markets and improving market access conditions.  
1.14.   The Agreement establishe d a legal framework of clear, stable and transparent rules, as well 
as disciplines that promote d trade and investment. Moreover , it establishe d legal certainty and 
predict ability for economic agents and expands consumer options for the acquisition of goods and 
services, in addition to establishing effective and transparent procedures for the resolution of 
disputes. In that sense, he was certain that Peruvian exporters and i mporters would  benefit  highly  
from its implementation.  
1.15.   For Peru, the Agreement was one of the most ambitious in terms of product coverage. 
Likewise, it was the first bilateral agreement that  contain ed specific chapters on small and medium 
enterprises (SMEs) and development  which would allow both countries to work jointly to bring 
concrete opportunities for SMEs and their integration in global value chains. The FTA was a key 
instrument that would contribute to improved economic and commercial  dynamism between Peru 
and Australia.  
1.16.   In 2020, bilateral trade had been  approximately USD 236 million, a figure that was still low, 
but which pose d a great  opportunity . By implementing the Agreement 's mechanisms, the Parties 
could  significant ly increase their trade and contribute to the post -pandemic economic reactivation.  
1.17.   Regarding the coverage of the Agreement, at the end of implementation in 2029, 99.8% of 
the Australian tariff would be duty -free for imports from Peru, which correspond ed to 100% of 
imports in value terms. Only 13 tariff lines would remain subject to duties.  Similarly , at the end of 
implementation, 99.4% of Peru's tariff would be duty -free for imports from Australia, corresponding 
to 97% of imports in value terms. Only 48 tariff lines would continue to be subject to duties , about 
0.6% of Peru's tariff. WT/REG404/M/1  
 
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  1.18.   Furthermore, the Agreement  had establishe d a framework without restrictions for the export 
of services, such as those related to mining and manufacturing, education  and software design, 
amon g others. That was particularly favourable  for Peruvian companies and SMEs that export ed 
services using e -commerce.  
1.19.   Peru was certain that the Agreement would be very beneficial and would allow t he Parties to  
achieve their objectives of growth and developme nt. He hoped that the factual presentation of the 
Agreement would help Members have a better understanding of its terms and look ed forward to 
answering any additional questions.  
1.20.   The representative of  the European Union  thanked the Parties for the presentation of the 
Agreement and for their replies to the EU's questions. She noted and welcomed the high level of 
liberalization and the inclusion of provisions on services, investment, SMEs, competition, labour, 
environment and e -commerce. She appreciated the work done.  
1.21.   The representative of Colombia  thanked the Secretariat for the factual presentation which 
was very exhaustive and had been reviewed  by Capital . She thanked the Parties for contributing to 
the transparency mech anism and for the presentations made that day. Colombia asked a number of 
questions on the Agreement regarding  non-tariff measures , foreign direct investment, provision s on 
trade and environment and general aspects of the Agreement. She thank ed the Parties  for their 
replies and for the consolidated document prepared by the Secretariat . Furthermore , Colombia 
considered with great interest the information on the chapter related to SMEs. The Parties recognize d 
the important role played by SMEs in bilateral trade and tried to create an environment which 
support ed the development , growth and competitiveness of SMEs.  She also stress ed the importance 
of the creation of contact points for SMEs a nd expressed her interest in knowing more about it in 
the future . 
1.22.   The re presentative of the United States  thanked Peru, Australia and the Secretariat for the 
transparency on the Agreement. She commended the Parties for the high level of liberalization under 
the Agreement. She finally thanked Peru and Australia for their commit ment to notifying their non -
notified agreements.  
1.23.   The Chairman  noted that the  consideration of the Goods and Services Aspects of the Free 
Trade Agreement between Peru and Australia , had allowed the Committee to clarify a number of 
questions and thus conclude d oral discussion of th e RTA in accordance with paragraph 11 of the 
Transparency Mechanism. If any delegations wish ed to ask follow up questions they were invited to 
forward submissions in writing to the Se cretariat by 29 March  2021 and Parties were asked to submit 
replies in writing by no later than 12 April 2021. In accordance with paragraph 13 of the 
Transparency Mechanism all written submissions, as well as minutes of this meeting w ould be 
circulated pro mptly, in all WTO official languages, and w ould be made available on the WTO website.  
1.24.   The Committee  took note  of the comments made.  
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