WT/REG404/1  
8 January 2021  
(21-0147) Page: 1/53 
Committee on Regional Trade Agreements    
 
  
FACTUAL PRESENTATION  
FREE TRADE AGREEMENT  BETWEEN PERU  AND AUSTRALIA  
(GOODS AND SERVICES ) 
Report by the Secretariat  
This report, prepared for the consideration of the Free Trade  Agreement between Peru 
and Australia , has been drawn up by the WTO Secretariat on its own responsibility and 
in full consultation with the Parties. The factual presentation reproduces as closely as 
possible the terminology used in the Agreement and in the comments provided and 
does not imply official endorsement o r acceptance by the Secretariat of such 
terminology. The report has been drawn up in accordance with the rules and procedures 
contained in the Decision for a Transparency Mechanism for Regional Trade Agreements 
(WT/L/671) and thus does not imply any value judgement by the Secretariat regarding 
the contents of the Agreement.  
Any technical questions arising from this report may be addressed to  Mr. Alberto Osnago 
(tel: +41 22 739 6969).  Any statistical questions arising from this report may be 
addressed to  Mr. Thakur Parajuli (tel: +41 22 739 5473).  
 
 
  WT/REG404/1  
 
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  Table of Contents  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 5 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 5 
1.2   Trade in services and investment  ................................ ................................ ..................  7 
2   CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ ......................  9 
2.1   Background information  ................................ ................................ ...............................  9 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ ...........  10 
3.1   Import duties and charges, and quantitative restrictions ................................ .................. 11 
3.1.1    General provisions  ................................ ................................ ................................ ...11 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ......... 11 
3.1.3    Liberalization schedule  ................................ ................................ ............................. 11 
3.1.3.1    Australia  ................................ ................................ ................................ .............. 12 
3.1.3.2    Peru ................................ ................................ ................................ .................... 13 
3.1.4    Tariff rate quotas  ................................ ................................ ................................ .....15 
3.2   Rules of origin  ................................ ................................ ................................ ............ 15 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................. 16 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ........ 17 
3.4.1    Standards  ................................ ................................ ................................ ............... 17 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ ......17 
3.4.1.2    Technical barriers to trade  ................................ ................................ ..................... 17 
3.4.2    Safeguard mechanisms  ................................ ................................ ............................ 18 
3.4.2.1    Global safeguards  ................................ ................................ ................................ .18 
3.4.2.2    Bilateral safeguards  ................................ ................................ ............................... 18 
3.4.2.3   Special safeguards  ................................ ................................ ................................ 19 
3.4.2.4    Balance -of-payments safeguards  ................................ ................................ ............ 19 
3.4.3    Anti-dumping and countervailing measures  ................................ ................................ .19 
3.4.4    Subsidies and State -aid ................................ ................................ ............................ 19 
3.4.5   Customs -related procedures ................................ ................................ ...................... 19 
3.4.6    Other regulations  ................................ ................................ ................................ .....20 
3.5   Sector -specific provisions on trade in goods  ................................ ................................ ...20 
3.5.1    Agriculture  ................................ ................................ ................................ .............. 20 
4   PROVISIONS ON TRADE IN SERVICES  ................................ ................................ ....... 20 
4.1   Scope and definitions  ................................ ................................ ................................ ..20 
4.2   Denial of benefits  ................................ ................................ ................................ .......21 
4.3   General provisions on trade in services  ................................ ................................ ......... 21 
4.3.1    Market access  ................................ ................................ ................................ ......... 21 
4.3.2    National and MFN treatment  ................................ ................................ ...................... 22 
4.3.3    Commercial presence  ................................ ................................ ............................... 22 
4.3.4    Performance requirements  ................................ ................................ ........................ 22 
4.3.5    Senior management and boards of directors  ................................ ............................... 22 WT/REG404/1  
 
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  4.3.6    Movement of natural persons  ................................ ................................ .................... 22 
4.4   Liberalization commitments  ................................ ................................ ......................... 23 
4.4.1    Australia  ................................ ................................ ................................ ................. 23 
4.4.1.1    MFN an d horizontal commitments  ................................ ................................ ........... 23 
4.4.1.2    Sector specific commitments  ................................ ................................ .................. 24 
4.4.2    Peru ................................ ................................ ................................ ....................... 27 
4.4.2.1    MFN and horizontal commitments  ................................ ................................ ........... 27 
4.4.2.2    Sector specific commitments  ................................ ................................ .................. 28 
4.5   Regulatory provisions  ................................ ................................ ................................ ..30 
4.5.1    Domestic regulation  ................................ ................................ ................................ .30 
4.5.2    Recognition  ................................ ................................ ................................ ............. 31 
4.5.3    Subsid ies ................................ ................................ ................................ ................ 31 
4.5.4    Safeguards  ................................ ................................ ................................ ............. 31 
4.5.5    Investment  ................................ ................................ ................................ ............. 32 
4.6   Sector specific provisions on trade in services  ................................ ................................ 32 
4.6.1    Financial services  ................................ ................................ ................................ .....32 
4.6.2   Telecommunications  ................................ ................................ ................................ .33 
5   GENERAL PROVISIONS OF THE AGREEMENT  ................................ .............................  34 
5.1   Transparency  ................................ ................................ ................................ ............. 34 
5.2   Current payments and capital movements  ................................ ................................ .....34 
5.3   Exceptions  ................................ ................................ ................................ ................. 34 
5.3.1    General exceptions  ................................ ................................ ................................ ..34 
5.3.2    Security exceptions  ................................ ................................ ................................ ..35 
5.3.3    Taxation  ................................ ................................ ................................ ................. 35 
5.4   Accession and withdrawal  ................................ ................................ ............................ 35 
5.5   Institutional framework  ................................ ................................ ............................... 35 
5.6   Dispute settlement  ................................ ................................ ................................ .....35 
5.7   Relationship with other agreements concluded by the Parties  ................................ ........... 37 
5.8   Government procurement  ................................ ................................ ............................ 39 
5.9   Intellectual property rights  ................................ ................................ .......................... 39 
5.10   Competition  ................................ ................................ ................................ ............. 41 
5.11   State -owned enterprises  ................................ ................................ ............................ 42 
5.12   Environment  ................................ ................................ ................................ ............ 43 
5.13   Labour  ................................ ................................ ................................ .................... 44 
5.14   Electronic commerce  ................................ ................................ ................................ .44 
5.15   Small and medium -sized enterprises  ................................ ................................ ........... 45 
5.16   Other  ................................ ................................ ................................ ...................... 45 
5.16.1    Cooperation and capacity building  ................................ ................................ ............ 45 
5.16.2    Competitiveness and business facilitation  ................................ ................................ ..45 
5.16.3    Development  ................................ ................................ ................................ ......... 45 WT/REG404/1  
 
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  5.16.4    Regulatory coherence  ................................ ................................ ............................. 46 
5.16.5    Anti-corruption  ................................ ................................ ................................ ......46 
ANNEX 1  ................................ ................................ ................................ ........................  48 
ANNEX 2  ................................ ................................ ................................ ........................  52 
ANNEX 3  ................................ ................................ ................................ ........................  53 
 
  WT/REG404/1  
 
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Key Facts  
 
Parties to the Agreement:  Australia  and Peru 
 
Date of Signature:    12 February 2018  
 
Date of Entry into Force:  11 February 2020  
 
Date of Notification:   24 June 2020  
 
Full implementation:    1 January 2029  
 
 
1  TRADE ENVIRONMENT  
1.1.  The Peru -Australia Free Trade Agreement (hereinafter the Agreement) is Australia's 15th and 
Peru's 19th RTA in force and notified to the WTO.1  
1.1  Merchandise trade  
1.2.  In 201 9, Australia 's merchandise exports amounted to USD 271 billion ( 1.4% of global exports) 
and imports to USD 222 billion (1. 2% of global imports). In the same year, Peru's merchandise 
exports amounted to USD 48 billion (0. 25% of global exports) and imports to USD 42 billion (0.22% 
of global imports). For both Parties, fuels and mining products represented the main commodity 
group exported (66.5% and 53.3% of Australia and Peru 's exports  respectively ) and manufactured 
products were the main commodity group imported (72.6 % and 69.8% of Australia and Peru's 
imports  respectively ).2 
1.3.  Based on 2019 trade data, Peru was Australia's 64th largest source of imports and 62nd largest 
destination for exports, while Australia was Peru's 3 5th lar gest source of imports and export 
destination.3 
1.4.  Chart 1.1 summarizes the trends in global and bilateral trade of the Parties. From 200 5 to 
2009, Australia  ran a global trade deficit  which turned positive in the period 2010 -2019 with the 
only exception of 2015. Starting in 200 7, it has run a bilateral trade deficit with Peru in all years 
until 2019 with the exception of 2011 and 2012 . Peru ran a global merchandise trade surplus 
between 2005 and 2012 and between 2016 and 2019. Peru's bilateral trade balance with Australia 
has fluctuated during the period. It was negative in 2005  and 2006, between 2012 and 2015 and in 
2019 while it ran a  bilateral trade surplus the other year s. 
 
1 Australia and Peru are also Parties to the Comprehensive and Progressive Agreement for Trans -Pacific 
Partnership which, as of 12 October 2020, it was not yet in force for Peru.  
2 WTO Trade Profiles 2020.  
3 UNSD, Comtrade database.  WT/REG404/1  
 
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  Chart 1.1 Australia and Peru:  Merchandise bilateral trade and with world (2005 -2019)  
 
Source : UNSD Comtrade database . 
1.5.  The commodity structure of trade between Austral ia and Peru, as well as of their global trade 
in the period 201 7-2019, is shown in Chart 1.2 on the basis of Harmonized System (HS) sections.  
Australia's largest import categories globally were machinery, vehicles and minerals (respectively 
24%, 16% and 13%) . Its largest exports globally were minerals (47%), natural and cultured pearls 
and animal products (6% each) , none of which were key imports by Peru; Peru's largest i mports 
from Australia were chemicals and machinery which accounted for more than three fourth of its 
imports from Australia . Minerals accounted for 59% of Australia 's imports from Peru while vegetables 
and prepared foods accounted for 22% of bilateral imports . Peru's  largest global exports were also 
minerals (46%), natural and cultured pearls (16%) and vegetables (11%). Its largest imports 
globally were machinery ( 23%) and minerals ( 15%) and chemicals (11%).  
0.00.10.20.30.40.50.6
0102030405060
2005 2007 2009 2011 2013 2015 2017 2019B. Peru 2005 -2019
(USD billions)
Imports from Australia (Right Axis)
Export to Australia (Right Axis)
Total Imports
Total Exports
0.00.10.20.30.40.50.6
050100150200250300
2005 2007 2009 2011 2013 2015 2017 2019A. Australia 2005 -2019 
(USD billions)
Imports from Peru (Right Axis)
Export to Peru (Right Axis)
Total Imports
Total ExportsWT/REG404/1  
 
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  Chart 1.2 Australia -Peru: Product composition of merchandise trade, annual average 
(2017 -2019)  
 
Source:  UNSD Comtrade database . 
1.2  Trade in services and investment  
1.6.  In 201 9, Australia 's share of total commercial services exports and imports were 1.14% and 
1.23% respectively, while Peru's share s were 0.13% of world exports and 0. 18% of world imports. 
With total commercial services exports of USD 69 billion and imports of USD 70 billion, Australia was 
the world's 14th largest exporter and importer of commercial services. Peru was the 46th largest 
exporter ( USD 7.7 billion) and 43rd largest importer ( USD 10.6 billion).4 
1.7.  Chart 1.3 and Chart 1.4 show global trade in commercial services for Australia and Peru (based 
on the period 2005 -2018). Australia and Peru were both net importer s of services from the world 
with travel services , other business services  and transportation services accounting for the largest 
categories of traded services.  
 
4 WTO Trade Profiles 202 0. 
59
121074223Australia's imports from Peru (%)
24
16
138544444312Australia's Global Imports (%)
47
6644332222Australia's Global Exports (%)
55
22662225Peru's imports from Australia (%)
23
15
11108755522225Peru's Global Imports (%)
46
1611873225Peru's Global Exports (%)Total: USD 0.2 billion Total: USD 228.6 billion
Total: USD 41.8 billion Total: USD 46.1 billionTotal:  USD 249.8 billion
Total: USD 0.1 billion
WT/REG404/1  
 
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  Chart 1.3 Australia: Trade in commercial services with the world, 2005 -2018  
 
Note:  No import data recorded for the categories manufacturing services on physical inputs owned by 
others  (2006 -2007, 2009-2018) and construction (2005 -2018). 
Source:  WTO Statistics database based on BPM6 . 
Chart 1.4 Peru: Trade in commercial services with the world, 2005 -2018  
 
Note:  No import and export data recorded for manufacturing services on physical inputs owned by other s 
(2005 -2018). 
 No export data recorded for maintenance and repair services (2006 , 2008-2018), construction 
(2005 -2018), and personal, cultural, and recreational services (2005 -2006). 
 No import data recorded for construction (2005 -2006, 2012 -2018) and personal, cultural, and 
recreational services (2005 -2006). 
Source:  WTO Statistics database based on BPM6 . 
 
1.8.  Chart 1.5 depicts Australia 's foreign direct investment  (FDI)  stocks and flows with the world 
for the period 20 05-2019. Australia has been a global recipient of FDI flows over the period with 
inward flo ws increasing in 2006 and maintaining relatively  stable and positive levels afterwards. 
Stocks of inward and outward FDI had experienced fluctuation but were trend ing upwards  
throughout the period .  
0.010.020.030.040.050.060.070.080.0
2005 2007 2009 2011 2013 2015 2017A. Australia imports from world 
2005 -2018
(USD billion)
0.010.020.030.040.050.060.070.080.0
2005 2007 2009 2011 2013 2015 2017B. Australia exports to world
2005 -2018
(USD billion)
0.02.04.06.08.010.012.0
2005 2007 2009 2011 2013 2015 2017A. Peru imports from world 
2005 -2018
(USD billion)
0.01.02.03.04.05.06.07.08.0
2005 2007 2009 2011 2013 2015 2017B. Peru exports to world
2005 -2018
(USD billion)
WT/REG404/1  
 
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  Chart 1.5 Australia: FDI stock and flow with world, 2005 -2019  
Source:  UNCTAD . 
 
1.9.  Chart 1.6 depicts Peru's foreign direct investment stocks and flows with the world for the period 
2005-2019. Peru has been a global recipient of FDI flows over the period subject to a number of 
fluctuat ions. Its global stocks of both inward and outward FDI have increased over the period with 
inward stocks outpacing outward  stocks . 
Chart 1.6 Peru: FDI stock and flow with world, 2005 -2019  
 
Note:  No data recor ded for Outward FDI flow for 2005 -2006. 
Source:  UNCTAD . 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  
2.1  Background information  
2.1.  The Agreement was signed on 12 February 2018 and notified on 24 June 2020 under 
Article  XXIV:7(a) of GATT 1994 and Article V:7(a) of GATS (see document WT/REG404/N/1 - 
S/C/N/1015).  
2.2.  The Agreement establishes a free trade area between the Parties (Article 1.1). The text of the 
Agreement, together with its annexes, is available on the Parties' official websites:  
Australia:  http://www.dfat.gov.au/trade/agreements/in -force/pafta/full -text/Pages/fta -text-and-
associated -documents   
0100200300400500600700800
2005 2007 2009 2011 2013 2015 2017 2019Australia FDI stock with world
2005 -2019 (USD billion ) 
Inward Outward
-60.0-40.0-20.00.020.040.060.080.0
2005 2007 2009 2011 2013 2015 2017 2019Australia FDI flow with world
2005 -2019 (USD billion) 
Inward Outward
020406080100120140
2005 2007 2009 2011 2013 2015 2017 2019Peru FDI stock with world
2005 -2019 (USD billion ) 
Inward Outward
0.02.04.06.08.010.012.014.016.0
2005 2007 2009 2011 2013 2015 2017 2019Peru FDI flow with world
2005 -2019 (USD billion) 
Inward OutwardWT/REG404/1  
 
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  Peru:  
http://www.acuerdoscomerciales.gob.pe/index.php?option=com_content&view=category&layout=
blog&id=209&Itemid=237   
2.3.  The Agreement is composed of 2 9 Chapters. Box 2.1 summarizes the structure of the 
Agreement. A number of Annexes, including the Parties' tariff elimination schedules and the lists of 
reservations on the cross-border supply of services and establishment (non -conforming measures) 
also form part of the Agreement. Side letters on specific issues complement the text of the 
Agreement.  
Box 2.1 Structure of the Agreement  
Chapters, annexes and side letters  Title/Description  
Preamble   
Chapter 1  Initial provisions and general definitions  
Chapter 2  National treatment and market access for goods  
Chapter 3  Rules of origin and origin procedures  
Chapter 4  Customs administration and trade facilitation  
Chapter 5  Trade remedies  
Chapter 6  Sanitary and phytosanitary measures  
Chapter 7  Technical barriers to trade  
Chapter 8  Investment  
Chapter 9  Cross -border trade in services  
Chapter 10  Financial services  
Chapter 11  Temporary entry for business persons  
Chapter 12  Telecommunications  
Chapter 13  Electronic commerce  
Chapter 14  Government procurement  
Chapter 15  Competition policy  
Chapter 16  State -owned enterprises and designed monopolies  
Chapter 17  Intellectual property  
Chapter 18  Labour  
Chapter 19  Environment  
Chapter 20  Cooperation and capacity building  
Chapter 21  Competitiveness and business facilitation  
Chapter 22  Development  
Chapter 23  Small and medium -size enterprises  
Chapter 24  Regulatory coherence  
Chapter 25  Transparency and anti -corruption  
Chapter 26  Administrative and institutional provisions  
Chapter 27  Dispute settlement  
Chapter 28  Exceptions and general provisions  
Chapter 29  Final provisions  
  
Side letters   
Side letter on education recognition   
Side letter on State and territory measures   
Letter terminating the agreement between Australia 
and the Republic of Peru on the promotion and 
protection of investment   
Source:  WTO Secretariat based on the Agreement.  
3  PROVISIONS ON TRADE IN GOODS  
3.1.  Chapter 2 of the Agreement covers trade in goods. It is complemented by Chapters 3 through 
7, which also contain disciplines applicable to trade in goods.  
3.2.  Chapter 2  governs the elimination of customs duties according to the Parties' Schedules.  It also 
prohibits the Parties from adopting or maintaining a measure that is inconsistent with the WTO 
Import Licensing Agreement (Article 2. 10). Neither Party shall adopt, extend or continue any waiver 
of a customs dut y that is conditioned, explicitly or implicitly, on the fulfilment of a performance 
requirement (Article 2.5). Articles 2.6 to 2.8 have provisions  for goods re -entered after repair and 
alteration, commercial samples of negligible value and printed advertis ing material and temporary 
admission of goods.  WT/REG404/1  
 
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  3.3.  A Committee on Goods is established to , among others, promote trade in goods, monitor the 
implementation of Chapters 2, 3 and 7 and address tariff and non -tariff barriers to trade in goods 
between the Parties  (Article 2.1 4). 
3.4.  Section C of Chapter 2 includes provisions specific to agricultural goods and applies to trade -
related measures adopted or maintained by a Part y (Article 2.16).5  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.5.  The Parties agree to apply national treatment to each other's imports in accordance with 
Article  III of GATT 1994, which is incorporated into and made part of the Agreement, mutatis 
mutandis (Article 2.3).6 
3.6.  Neither Party shall adopt or maintain any prohi bition or restriction or measure having 
equivalent effect, including quantitative restrictions, on the import of any good of the territory of the 
other Party, except as provided in the Agreement or in accordance with the WTO Agreement 
(Article  2.9). The Pa rties understand that Article XI of GATT and its Understanding prohibit a Party 
from adopting or maintaining import (and export) price requirements, and import licensing 
conditioned on the fulfilment of a performance requirement. Neither Party shall requir e a person of 
the other Party to establish or maintain a contractual or other relationship with a distributor in its 
territory.7  
3.7.  With respect to administrative fees and formalities, each Party shall ensure, in accordance with 
Article VIII:1 of GATT 1994 and its interpretative notes, that all fees and charges of whatever 
character imposed on or in connection with importation (or exportation ) are limited in amount to the 
approximate cost  of services rendered and do not represent an indirect protection to domestic goods 
or a taxation of imports or exports for fiscal purposes (Article 2.11). Consular transactions, including 
related fees and charges, shall not be required in connection with the importation of any good of 
either Party. Article 2.11 also foresees that each Party shall make available on the internet details 
of the fees and charges it imposes in connection with importation and exportation.8  
3.1.2   Liberalization of trade and tariff lines  
3.8.  The Parties shall eliminate customs duties on originating goods of the other Party in accordance 
with their Schedules, contained in Annex 2-B to the Agreement  (Article 2.4) . Neither Party shall 
increase any existing customs duty, or adopt any new customs duty, on an originating good of the 
other Party other than in accordance with the Agreement.  Moreover, on the request of either Party, 
the Parties shall consult to consider accelerating the elimination of customs duties or improving the 
market access conditions set out in their Schedules.  
3.1.3   Liberalization schedule  
3.9.  Annex 2 -B to the Agreement contains the Parties' respective tariff elimination schedules. The 
schedules specify the base rate and the staging category of each product.  
 
5 Agricultural goods are defined as those goods referred to in Article 2 of the Agreement on Agriculture 
(Article 2.15).  
6 For Peru, Article 2.3.1 does not apply to used clothing and footwear, used vehicles and used 
automotive engines, parts and replace ments, used tyres and used goods, machinery and equipment which 
utilise radioactive energy sources.  
7 For Peru, Articles 2.9.1 and 2.9.2 do not apply to used clothing and footwear, used vehicles and used 
automotive engines, parts and replacements, used tyr es and used goods, machinery and equipment which 
utilise radioactive energy sources.  
8 Information on fees and charges in connection with importation and exportation can be found at: 
https://www.abf.gov.au/importing -exporting -and-manufacturing/importing/cost -of-importing -goods/overview  
for Australia and www.sunat.gob.pe  and www.mef.gob.pe  for Peru.  WT/REG404/1  
 
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  3.1.3.1   Australia  
3.10.   The bas e rates of duty set out in its schedule reflect Australia 's MFN duties in effect on 
1 January 2017. The elimination  or reduction of customs dut ies by Australia includes four staging 
categories:  
a) duties eliminated entirely at entry into force (EIF),  
b) duties eliminated in three annual stages (B3),  
c) duties eliminated in four annual stages (B4), and  
d) ad valorem  component of the customs duties eliminated on entry into force with non-
ad valorem  component maintained (AU -R1). 
3.11.   Australia's applied tariff in 2020 consist ed of 6, 477 lines at the HS eight -digit level (HS 2017); 
99.7% of its tariff has ad valorem  duties, with 5 non-ad valorem  duty lines  and 17 lines with 
compound duties . 
3.12.   Table 3.1 shows tariff elimination commitments by Australia for imports from Peru. Before the 
entry into force of the Agreement, 3, 091 tariff lines, representing 47.7% of Australia's tariff, and 
corresp onding to 89% of its imports from Peru during 2017 -2019, were duty free on an MFN basis. 
At the entry into force of the Agreement  in 2020 , an additional 3, 124 lines ( 48.3% of the tariff) , 
corresponding to 10% of imports,  became duty -free for imports from Peru. In 2022 and 2023, an 
additional 24 9 lines will become duty free  leaving 13 lines subject to specific duties .9 
Table 3.1 Australia: Tariff elimination commitments under the Agreement and 
corresponding ave rage trade  
Duty phase -out period  Tariff lines in Australia's tariff schedule  Australia's imports from 
Peru (2017 -19)a 
Number  % Value  
(USD million)  % 
2020 (MFN)  3,091  47.7 184.8  89.3 
2020 3,124  48.3 21.1 10.2 
2022 189 2.9 0.1 0.0 
2023 60 0.9 1.1 0.5 
Remain dutiableb 13 0.2 0.0 0.0 
Total 6,477 100.0  207.1  100.0  
a Import coverage is from HS chapters 1 -97. 
b Under the Agreement the ad valorem  part of the duty is eliminated while the specific duty will 
remain at the end of the implementation period.   
Note:  Based on the HS 2017 nomenclature . 
Source:  WTO estimates based on data provided by Australia and WTO -IDB. 
 
3.13.   Table 3.2 shows Australia's tariff elimination, by HS section with respect to imports from Peru. 
The 13 lines that will remain subject to duties are found in HS Section  XVII.  
Table 3.2 Australia: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 2020  Duty Free Lines  Under the 
Agreement  Remain 
Dutiable 
Lines  Avg. Final 
Tariff 
(Dutiable)  Avg. 
Tariff 
(%) Number 
of lines Duty free 
lines 2020  2022  2023  
I 0.0 374 367 7     
II 0.7 321 275 46     
III 1.8 49 31 18     
 
9 The MFN duties on the 13 lines, all relate to used or second -hand vehicles (8703.21.11, 8703.22.11, 
8703.23.11, 8703.24.11, 8703.31.11, 8703.32.11, 8703.33.11, 8703.40.11, 8703.50.11, 8703.60.11, 
8703.70.11, 8703.80.1 1, 8703.90.11), have an ad-valorem  part of 5% and a specific duty of AUD 12,000. The 
Agreement eliminates the ad valorem  part leaving the specific duty unchanged at the end of implementation.  WT/REG404/1  
 
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  HS 
Section  MFN 2020  Duty Free Lines  Under the 
Agreement  Remain 
Dutiable 
Lines  Avg. Final 
Tariff 
(Dutiable)  Avg. 
Tariff 
(%) Number 
of lines Duty free 
lines 2020  2022  2023  
IV 2.6 293 140 151  2   
V 0.4 198 184 14     
VI 1.4 963 697 260  6   
VII 4.5 239 24 174 36 5   
VIII 3.4 92 29 57  6   
IX 3.2 179 65 110  4   
X 3.7 285 72 213     
XI 4.1 920 162 758     
XII 2.5 60 30 10  20   
XIII 3.4 167 52 105 10    
XIV 1.0 53 42 11     
XV 3.5 583 171 348 59 5   
XVI 2.9 1,004  414 539 44 7   
XVII 3.6 272 76 154 29  13 * 
XVIII 0.9 240 195 37 8    
XIX 1.6 19 13 6     
XX 3.6 159 45 106 3 5   
XXI 0.0 7 7      
Total  2.6 6,477 3,091  3,124  189 60 13 * 
* Remaining dutiable tariff lin es are subject to specific rates only .  
Note:  For the calculation of averages, specific rates are excluded, and the ad valorem  parts of alternate 
rates are included . 
 Based on the HS 2017 nomenclature . 
Source:  WTO estimates based on data provided by Australia and WTO -IDB. 
 
3.1.3.2   Peru  
3.14.   The provisions of Peru 's schedule are expressed in terms of the Customs Tariff Schedule of 
Peru. The elimination of customs dut ies by Peru includes four staging categories:  
a) duties eliminated entirely at entry into force (EIF),  
b) duties eliminated in five annual stages (B5),  
c) duties eliminated in ten annual stages (B10), and  
d) customs duties ex cluded  from tariff elimination (X).  
3.15.   Moreover, t he schedule specifies four categories of tariff-rate quotas for  dairy products (TRQ 
DR), sugar (TRQ SG),  rice (TRQ RC), and  sorghum (TRQ SH) . The ad valorem duties and the specific 
duties derived from the application of the Peruvian price -band system (hereinafter SPFP), 
established in the Supreme Decree N° 115 -2001-EF and its amendments, are not applied to imports 
within an aggregate quota in a ny calendar year specified in its schedule. For the out quota quantities, 
customs duties on originating goods provided for in those categories are exempt from tariff 
elimination . 
3.16.   Peru's applied tariff in 2020 consisted of 7,790 lines at the ten -digit level  (HS 2017), 99.4% 
of which were ad valorem while 48 lines had compound duties.   
3.17.   Table 3.3 shows Peru's tariff elimination commitments with respect to Australia . Before the 
entry into force of the Agreement, 5,44 2 lines were duty free on an MFN basis, representing 69.9% 
of Peru's tariff, and corresponding to 93% of its imports from Australia during 201 7-2019. At the 
entry into force of the Agreement, an additional 1, 835 lines ( 23.6% of the tariff) became duty -free, 
corresponding to 2.5% of its imports from Australia . In 2024 and 2029, an additional 465 lines, 
corresponding to 6% of tariff s and 1 .8% of imports, will become duty free leaving 48 lines subject WT/REG404/1  
 
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  to the  SPFP. While ten of these lines are excluded from the Agreement (category X)10, the other 38 
lines are fully liberalized within the quota while the out of quota duty rates remain the same  as the 
MFN rates (categories TRQ DR, TRQ SG, TRQ RC and TRQ SH).11 
Table 3.3 Peru: Tariff elimination commitments under the Agreement and corresponding 
average trade  
Duty phase -out period  Tariff lines in Peru 's tariff schedule  Peru's imports from Australia 
(2017 -19)a 
Number  % Value (USD 
million)  % 
2020 (MFN)  5,442  69.9  117.1  93.0  
2020  1,835  23.6  3.2 2.5 
2024  458 5.9 2.3 1.8 
2029  7 0.1 0.0 0.0 
Remain dutiableb 48 0.6 3.4 2.7 
Total  7,790  100.0  125.9  100.0  
a Import coverage is from HS chapters 1 -97. 
b 48 tariff lines remaining dutiable are subject to the SPFP on an MFN basis. Of these lines, t he duties 
for 38 are eliminated for imports within a quota while the out of quota rates are the same as the 
MFN rates in 2020. Ten tariff lines are excluded from liberalization under the Agreement.  
Note:  In-quota rates are excluded from the computation  while out -quota rates are included .  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Peru.  
 
3.18.   Table 3.4 shows Peru's tariff elimination, by HS section with respect to imports from Australia . 
The 48 lines that will remain subject to duties are found in HS Sections I, II, IV and VI. Seven lines 
in Section II, two in Section IV and one in Section VI are excluded from the Agreement . 
Table 3.4 Peru: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 2020  Duty free lines under the 
Agreement  Remain 
Dutiable 
Lines  Avg. Final 
Tariff 
(Dutiable)  Avg. Tariff 
(%) Number  
of lines Duty -free 
lines 2020  2024  2029  
I 1.6 460 335 85 12 6 22 * 
II 2.9 432 228 167 25  12 6.0 
III 1.7 70 50 17 3    
IV 3.1 322 155 97 56 1 13 * 
V 0.2 214 208 2 4    
VI 0.8 1,554  1,345  137 71  1 6.0 
VII 1.8 311 220 38 53    
VIII 2.1 79 52 26 1    
IX 2.3 149 93 31 25    
X 2.2 241 152 62 27    
XI 7.5 972 249 722 1    
XII 7.9 55 8 21 26    
XIII 1.5 174 130 32 12    
XIV 1.4 59 45 14     
XV 0.8 698 605 38 55    
XVI 0.7 1,207  1,087  68 52    
XVII 1.5 267 202 57 8    
XVIII 1.5 288 218 70     
 
10 1005.90.11.00, 1005.90.12.00, 1005.90.19.00, 1005.90.90.00, 1103.13.00.00, 1108.12.00.00, 
1108.13.00.00, 1702.30.20.00, 2309.90.90.00 and 3505.10.00.00  
11 0401.10.00.00, 0401.20.00.0 0, 0402.10.10.00, 0402.10.90.00, 0402.21.11.00, 0402.21.19.00, 
0402.21.91.00, 0402.21.99.00, 0402.29.11.00, 0402.29.19.00, 0402.29.91.00, 0402.29.99.00, 
0402.99.10.00, 0404.10.90.00, 0405.10.00.00, 0405.90.20.00, 0405.90.90.00, 0406.30.00.00, 
0406.90.40.00 , 0406.90.50.00, 0406.90.60.00, 0406.90.90.00, 1006.10.90.00, 1006.20.00.00, 
1006.30.00.00, 1006.40.00.00, 1007.90.00.00, 1701.12.00.00, 1701.14.00.00, 1701.99.90.00, 
1702.60.00.00, 1702.90.20.00, 1702.90.30.00, 1702.90.40.00, 1901.90.20.00, 1901.90.90.00,  
2106.90.79.00 and 2106.90.90.00  WT/REG404/1  
 
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  HS 
Section  MFN 2020  Duty free lines under the 
Agreement  Remain 
Dutiable 
Lines  Avg. Final 
Tariff 
(Dutiable)  Avg. Tariff 
(%) Number  
of lines Duty -free 
lines 2020  2024  2029  
XIX 4.2 69 21 48     
XX 4.6 162 39 96 27    
XXI 6.0 7  7     
Total 2.2 7,790  5,442  1,835  458 7 48 6.0 
* Remaining dutiable tariff lines subject specific rates only.  
Note:  In-quota rates are excluded from the computation while out -quota rates are included . For the 
calculation of averages, specific rates are excluded, and the ad valorem  parts of alternate rates are 
included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Peru.  
 
3.1.4   Tariff rate quotas  
3.19.   Peru maintains tariff -rate quotas for 38 tariff lines for dairy products, sugar, rice and sorghum. 
Ad valorem  duties and specific duties derived from the application of the SPFP are eliminated for 
imports within quota  while out of quota imports remain subject to the ad valorem  duty, if any, and 
the SPFP .12 Table A2. 1 in Annex 2 provides additional details.  Australia does not have any tariff rate 
quotas.  
3.2  Rules of origin  
3.20.   Chapter 3 contains provisions on rules of origin and is supplemented by Annex es 3-A (dat a 
requirements) and 3 -B (product -specific rules of origin) . 
3.21.   A good qualifies as originating in a Party if it  is: 
• wholly obtained or produced  entirely in the territory of one or both Parties , as established in 
Article 3.3,  
• produced entirely in the territor y of one or both Parties, exclusively from originating 
materials, or  
• produced entirely in the territory of one or both of the Parties, using non -originating 
materials and compl ying with the applicable product specifi c rule in Annex 3 -B. 
3.22.   Section B of Annex 3-B contains product specific rules of origin and the conditions that need 
to be fulfilled for goods to qualify as originating in case th ose goods are produced in one or both 
Parties  using non -originating materials . While for most of the goods a change in tariff classification, 
at the 2, 4, or 6 -digit levels, constitutes the most common criterion used to determine origin , a 
regional value content (RVC) rule can be used as an alternative criterion in a number of cases  and 
some lines provide process rules suc h as smoking crushing/grinding or refining .13 The RVC is 
calculated according to the methods defined in Article 3.4. Specific rules applicable to seafood (HS 
Chapter 03),  animal or vegetable fats and oils (HS Chapter 15),  mineral fuels, mineral oils and 
products of their distillation, chemicals , plastics and rubber  (HS Chapters 27 to 40 ) and apparel and 
clothing (HS Chapters 61 to 63)  are contained in Chapter Notes in Annex 3 -B.  
3.23.   Materials used in production and their value are defined in Articles 3.5 and 3.6 while Article  3.7 
provides for further adjustments to the value of materials.  
3.24.   Accumulation of origin is governed by Article 3.8. Originating goods or materials of a Party 
incorporated into a good in the territory of the other Party shall be consid ered to originate in the 
territory of the other Party.  Furthermore, a good shall be considered originating if the good is 
 
12 Only three lines (1108120000, 1108130000 and 3505100000) are subject to an ad valorem  duty of 
6% in addition to the SPFP.  
13 Australia clarified that when multiple rules occur, they are co -equal and, in many cases, traders  have 
a choice between which rule they wish to use.  WT/REG404/1  
 
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  produced in the territory of one or both Parties by one or more producers, provided that the good 
satisfies the requirements establish ed in Article 3.2 and all other applicable requirements of 
Chapter  3. 
3.25.   Article 3.9 provides for a de minimis  rule. A good shall be considered as originating if the 
value of non -originating materials that do not satisfy the applicable change in tariff classi fication 
requirement specified in Annex 3 -B does not exceed 10% of the value of the good or, for goods 
classified in Chapter s 50 to 63 , the total weight of all non -originating materials does not exceed  10% 
of the total weight  of the good . 
3.26.   Articles 3.10 to 3.16 deal with fungible goods or materials, accessories, spare parts, tools and 
instructional or other information material, packaging materials and containers for retail sale, 
packing materials and containers for shipment, indirect materials, sets of good s and transport 
through non -Parties.  
3.27.   Section B of Chapter 3 contains origin procedures, including  claims for preferential tariff 
treatment, certificate of origin, discrepancies  and minor errors, waiver of certificate of origin, 
obligations relating to impo rtation, and record keeping requirements  (Articles 3.17 -3.22).  
3.28.    Verification of origin is governed by Article 3.23. Verification of any claim for preferential 
treatment may be carried out by the importing Party  through either a written request  for information  
to the importer, exporter or producer of the good , or through a verification visit to the premises of 
the exporter or producer or o ther procedures decided by the Parties. If the importing Party makes a 
verification request for information from an exporter or producer , it shall inform the exporting Party. 
The exporting Party  may also assist with the verification if requested and if dee med appropriate and 
in accordance with its laws and regulations. If the exporting Party did not provide  the requested 
assistance, the importing Party shall not deny a claim for preferential tariff treatment. During 
verification, the importing Party shall a llow the release of t he good, subject to payment of duties or 
provision of security as provided for in the importing Party's law. If as a result of the verification the 
importing Party determines that the good is originating, it shall refund any excess dut ies paid or 
release any security provided unless the security covers other obligations as well.  
3.29.   Article 3.24 states the circumstances under which the importing Party may deny a claim for 
preferential tariff treatment. When a  claim for preferential treatme nt is denied by the importing 
Party, a determination, including the reasons for the denial, shall be issued to the importer.  
3.30.   Provisions on refunds and claims for preferential treatment after importation are provided for 
in Article 3.25. Article 3.26 permi ts a Party to establish or maintain appropriate penalties for 
violations of its laws and regulations related to Chapter 3.  Each Party shall maintain the 
confidentiality of the information collected and shall protect that information from disclosure that 
could prejudice the competitive position of the person providing the information (Article 3.27).  In 
addition, each Party shall maintain the confidentiality of the information collected in accordance with 
Chapter 3.  
3.31.   Annex 3 -A lists the  minimum  data required i n a certificate of origin, including information on 
the importer, exporter and producer, the description and HS tariff classification of the good , the rule 
of origin under which the good qualifies , the blanket period and the authorised signature of the 
certifier and the date of issuance . 
3.3  Export duties and charges, and quantitative restrictions  
3.32.   Neither Party shall adopt or maintain any prohibition or restriction or measure having 
equivalent effect, including quantitative restrictions, on the exportation of any good of the territory 
of the other Party, except as provided in the Agreement or in accordance with the WTO Agreement 
(Article 2.9).   
3.33.   The Parties understand that Article XI of GATT and its Understanding prohibit a Party from 
adopting or maintaining export (and import) price requirements. With respect to administrative fees 
and formalities, each Party shall ensure, in accordance with Article VIII:1 of GATT 1994 and its 
interpretative notes, that all fees and charges of whatever character i mposed on or in connection 
with exportation (or importation)  are limited in amount to the approximate cost of services rendered WT/REG404/1  
 
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  and do not represent an indirect protection to domestic goods or a taxation of exports or imports for 
fiscal purposes (Article 2 .11). 
3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.34.   Chapter 6 covers sanitary and phytosanitary (SPS) measures and Chapter 7 addresses 
technical barriers to trade (TBT).  
3.4.1.1   Sanitary and phytosanitary measures  
3.35.   The Parties reaffirm their rights and obligations under the WTO  SPS Agreement (Article 6.3).  
3.36.   The Parties recognise that adaptation to regional conditions is an important means to facilitate 
trade (Article 6.6). The Parties shall take into account the relevant guidance of the WTO SPS 
Committee  and international standards, guidelines and recommendations and the y may cooperate 
on the recognition of pest - or disease -free areas, and areas of low pest or disease prevalence with 
the objective of acquiring confidence in the procedures followed by each  Party.  
3.37.   They also acknowledge that recognition of the equivalence of SPS measures is an important 
means to facilitate trade (Article 6.7). Further to Article 4 of the WTO SPS Agreement, the Parties 
shall apply equivalence to a group of measures or on a sys tems-wide basis, to the extent feasible 
and appropriate. In determining the equivalence of a specific SPS measure, group of measures or 
on a systems -wide basis, each Party shall take into account the relevant guidance of the WTO SPS 
Committee and internati onal standards, guidelines and recommendations.  
3.38.   Articles 6.8 to 6.11 deal with science and risk analysis, transparency, contact points and 
cooperation.  Each Party shall ensure that its SPS measures either conform to the relevant 
international standards, gu idelines or recommendations or, if they do not do so, that they are based 
on documented and objective scientific evidence  that sustains the measures  while recognising their 
obligations regarding assessment of risk under Article 5 of the SPS Agreement. Nothing in the 
Chapter, however, prevents a Party from establishing the level of protection it deems appropriate; 
establishing or maintaining an approval procedure that requires a risk analysis before granting 
market access for a product; or adopting or mainta ining an SPS measure on a provisional basis  
(Article 6.8) . Under Article 6.9 the Parties commit to notify each other of a proposed SPS measure 
that may have a significant effect on the trade of the other Party. Unless urgent problems of human, 
animal or pl ant life or health protection arise  or threaten to arise, or the measure is of a trade 
facilitating nature, a Party shall normally allow at least 60 days (and more if feasible) for interested 
persons and the other Party to provide written comments on the p roposed measures.  
3.39.   A Committee on SPS Measures is established under Article 6.5 with the objectives to enhance 
each Party's implementation of Chapter 6, consider SPS matters of mutual interest and enhance 
communication and cooperation on SPS matters. Contac t points (Department of Agriculture and 
Water Resources for Australia or its successor, and the Vice Ministry of Foreign Trade of the Ministry 
of Foreign Trade and Tourism for Peru or its successor) will facilitate communications between the 
Parties on mat ters covered by the Chapter (Article 6.10).  
3.40.   Article 6.12 provides that the dispute resolution mechanism set out in Chapter 27 does not 
apply to Chapter 6. However,  when a Party considers that an SPS measure of the other Party is or 
might be inconsistent wi th Chapter 6, such Party may request technical consultations which shall be 
held within 60 days of receiving the request, unless otherwise agreed by the Parties, and may be 
conducted via teleconference, videoconference, or through any other means mutually agreed upon 
by the Parties.  
3.4.1.2   Technical barriers to trade  
3.41.   Chapter 7 covers TBT and applies to the preparation, adoption and application of all standards, 
technical regulations, and conformity assessment procedures of the central level of Government that 
may affect trade in goods between the Parties (Article 7.3).  WT/REG404/1  
 
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  3.42.   The Parties affirm their rights and obligations under the WTO Agreement on TBT (Article 7.4).  
3.43.   The Parties recognise the importance of international standards, guides and recommend ations 
in supporting greater regulatory alignment, good regulatory practice and reducing unnecessary 
barriers to trade (Article 7.5). The y shall cooperate, when feasible and appropriate, to ensure that 
international standards, guides and recommendations th at are likely to become a basis for technical 
regulations and conformity assessment procedures do not create unnecessary obstacles to 
international trade.  
3.44.   Each Party shall accord to conformity assessment bodies located in the territory of the other 
Party t reatment no less favourable than it accords to conformity assessment bodies located in its 
own territory (Article 7.6). To do so, each Party shall apply the same or equivalent procedures, 
criteria and other conditions to accredit, approve, license or other wise recognise conformity 
assessment bodies located in the territory of the other Party that it may apply to conformity 
assessment bodies in its own territory.  
3.45.   Article 7.9 provides for cooperation and trade facilitation. Article 7.7 includes provisions for  
transparency  and to allow persons from the other Party to participate in the development of technical 
regulations, standards and conformity assessment procedures by its central government bodies, 
while Article 7.10 covers information exchange and technica l discussions. The Parties shall designate 
and notify contact points for matter arising under Chapter 7 ( Article 7.11 ).14 The contact points are 
responsible for the communication and exchange of information between the Parties and the relevant 
Government a gencies.  
3.46.   Annexes 7 -A and 7 -B respectively deal with specific rules and requirements for wine and 
distilled spirits and organic products.  
3.4.2   Safeguard mechanisms  
3.47.   Chapter 5 disciplines the use of global and bilateral safeguard measures.  
3.4.2.1   Global safeguards  
3.48.   Each Party retains its rights and obligations under Article XIX of GATT 1994 and the WTO 
Agreement on Safeguards (Article 5.2). The Agreement shall not confer any additional rights or 
impose any additional obligations on the Parties with respect  to measures applied under them.  
3.4.2.2   Bilateral safeguards  
3.49.   During the transition period, a Party may apply a transitional bilateral safeguard measure.15 
Such a measure may consist of either i) a suspension of the further reduction of the customs duty 
on the goo d provided for under the Agreement, or ii) an increase in the rate of customs duty on the 
good to a level not to exceed the lesser of the MFN applied rate of duty in effect at the time the 
safeguard measure is applied, and the MFN applied rate of duty on t he good in effect on the day 
immediately preceding the date of entry into force of the Agreement  (Article 5.3) . Neither tariff rate 
quotas nor quantitative restrictions are permissible forms of bilateral safeguard measures.  The 
Parties shall not apply or m aintain a transitional safeguard measure on any product imported under 
a tariff rate quota established by the Party under the Agreement.  A transitional safeguard measure 
cannot be applied against an originating good of the other Party where the exporting P arty's share 
of imports in the importing Party does not exceed 3%. 
3.50.   A Party shall apply a transitional safeguard measure only following an investigation by its 
competent authorities (Article 5.4).  
3.51.   A bilateral safeguard measure may be applied for a period of time not exceeding two year s 
as may be necessary to prevent or remedy serious injury (Article 5.5). The period may be extended 
 
14 The Parties informed that the contact points had been established. Contact points' details are not for 
public release.  
15 The term "transition period" in relation to a particular product means the three -year period from the 
date of entry into force of the Agreement. For any product for which tariff elimination occurs in more than 
three years, "transition period" shall mean the tariff elimination period for that product.  WT/REG404/1  
 
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  by up to one year if the competent authority of the Party that appli es the measure determines that 
the transitional safeguard measure continues to be necessary to prevent or remedy further or 
ongoing serious injury and to facilitate adjustment. The measure shall be terminated in any case at 
the end of the transition period .  
3.52.   A Party shall immediately notify the other Party, in writing, if it initiates a transitional 
safeguard investigation, makes a finding of serious injury, or threat of serious injury, caused by 
increased imports, takes a decision to apply or extend a tran sitional safeguard measure, and takes 
a decision to modify a transitional safeguard measure previously undertaken (Article 5.6). The 
Parties shall enter into  consultations to review a notification or any public notice or report that the 
competent investiga ting authority issued in connection  with that proceeding.  
3.53.   Consultations regarding appropriate trade liberali zing compensation in the form of 
concessions having substantially equivalent trade effects or equivalent to the value of the additional 
duties expec ted to result from the bilateral safeguard measure shall begin within 30 days of the 
application of the bilateral safeguard measure (Article 5.7). If the Parties are unable to agree on 
compensation, the Party against whose originating good the safeguard me asure is applied may 
suspend the application of concessions that have trade effects that are substantially equivalent to 
the safeguard measure. The obligation to provide compensation and the corresponding right to 
suspend concessions shall terminate on the  date of the termination of the safeguard measure.  
3.54.   Neither Party shall apply or maintain two or more of the following measures, with respect to 
the same good, at the same time i) a transitional safeguard measure, ii) a safeguard measure under 
Article XIX o f GATT 1994 and the Safeguards Agreement, iii) a safeguard measure under the 
Agreement on Agriculture (Article 5.8).  
3.4.2.3   Special safeguards  
3.55.   There are no provisions on special safeguards in the Agreement.  
3.4.2.4   Balance -of-payments safeguards  
3.56.   The Agreement does not co ntain any provision for the imposition of balance -of-payments 
safeguards for trade in goods.  
3.4.3   Anti-dumping and countervailing measures  
3.57.   Each Party retains its rights and obligations under Article VI of GATT 1994 and the WTO 
Agreement with regard to the appli cation of antidumping and countervailing duties (Article 5.9). The 
Agreement shall not confer any additional rights or obligations on the Parties with regard to actions 
taken pursuant to Article VI of GATT 1994 and the WTO Agreement with regard to the appl ication of 
antidumping and countervailing duties.  
3.58.   Neither Party shall have recourse to dispute settlement under Chapter 27 of the Agreement 
for any matter related to antidumping and countervailing duties.  
3.4.4   Subsidies and State-aid 
3.59.   Neither Party shall adopt or maintain export subsid ies on any agricultural good destined for 
the territory of the other Party (Article 2.17).  
3.4.5   Customs -related procedures  
3.60.   Chapter 4 covers customs administration and trade facilitation. The Parties shall ensure that 
their customs  procedures are applied in a manner that is predictable, consistent and transparent 
(Article 4.1). The Parties shall encourage cooperation regarding customs issues and endeavour to 
provide each other with advance notice of any significant administrative ch ange, modification of a 
law or regulation that govern s importations, exportations or transit (Article 4.2). The Parties shall 
cooperate through information sharing and other activities as appropriate, to achieve compliance 
with their respective laws and re gulations that pertain to  the implementation and operation of the 
provisions of the Agreement governing importation, exportation or transit, the implementation, WT/REG404/1  
 
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  application and operation of the Customs Valuation Agreement, restriction s or prohibitions on 
imports, exports or transit , investigation and prevention of customs offences and other customs 
matters. The Article has provisions on the procedures to request information if the Party has a 
reasonable suspicion of unlawful activity related to its laws or regulations governing impo rtations, 
exportations or transit . 
3.61.   Chapter 4 also contains rules on advance rulings , which shall be provided by the importing 
Party prior to the import ation of the good  and at the written request of the importer  in its territory 
or an exporter or producer in the territory of the other Party , with regard to  tariff classification, the 
application of customs valuation criteria in accordance with the Customs Valuation Agreement, 
whether a good is originating in accordance with Chapter 3 of the Agreement and any  other matters  
decided by the Parties. In issuing an advance ruling, the importing Party shall take into account the 
facts and circumstances that the requester has provided. Advance rulings shall take effect  on the 
date that they are issued or on another d ate specified in the ruling, and remain in effect  for at least 
three years, provided that the law, facts and circumstances on which the ruling is based remain 
unchanged ( Article 4.3) .16 Each Party must ensure that any person to whom it has issued a 
determi nation has access to an administrative and judicial review of the determination; any decisions 
taken following a review must be notified to the Parties including the reasons for the decision 
(Article  4.5). Article 4.8 provides for penalties by a Party's cu stoms authority for a breach of its 
customs laws, regulations or procedural requirements, including those governing tariff classification, 
customs valuation, country of origin and claims for preferential treatment under the Agreement. 
Other provisions in t he Chapter include response to requests for advice or information, automation , 
express shipments, risk management, release of goods, publication and confidentiality.  
3.4.6   Other regulations  
3.5  Sector -specific provisions on trade in goods  
3.5.1    Agriculture  
3.62.   Article 2.18 c overs trade of products of modern biotechnology defined as agricultural goods, 
as well as fish and fish products, developed using modern biotechnology, except medicines and 
medical products. The Parties confirm the importance of transparency, cooperation a nd exchanging 
information related to the trade of those products.  
3.63.   Annexes 7 -A and 7 -B respectively deal with specific rules and requirements for wine and 
distilled spirits and organic products.  Annex 7 -A requires the Parties to make information about thei r 
laws and regulations concerning wine and distilled spirits publicly available. The Annex also specifies 
labelling requirements for wines and spirits. Annex 7 -B applies to technical regulations, standards 
or conformity assessment procedures relating to th e production, processing or labelling of products 
as organic for sale or distribution within the Parties territories. The Parties are encouraged to 
exchange information and cooperate on issues related to organic products.  
4  PROVISIONS ON TRADE IN SERVICES  
4.1.  Trade in services is covered in Chapters 8, 9, 10, 11  and 12 which deal respectively with 
investment, cross -border trade in services, financial services, the temporary entry for 
businesspersons  and telecommunication s. These chapters are complement ed by the Parties' lists of 
reservations in Annexes I, II, and III. Annexes I and II contain reservations for existing and futures 
measures for all sectors, except financial services which are listed in Annex  III.  
4.1  Scope and definitions  
4.2.  Chapter 9 applies t o measures by a Party affecting cross -border trade in services by service 
suppliers of the other Party (Article 9.2). Cross -border trade in services, as defined in Article 9.1, 
covers GATS modes of supply 1, 2 and 4. Chapter 9 does not apply to: a) financi al services with 
 
16 If a Party’s law provides that a n advance ruling becomes ineffective after a fixed period of time, it 
shall endeavour to provide procedures that allow the requester to renew the ruling expeditiously before it 
becomes ineffective, in situations in which the law, facts and circumstances on  which the ruling was based 
remain unchanged.  WT/REG404/1  
 
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  some exceptions17, b) Government procurement, c) services supplied in the exercise of 
Governmental authority , d) subsidies or grants by a Party, including Government -supported loans, 
guarantees and insurances , and e) air services  with some  exceptions. The Chapter does not impose 
any obligation on a Party with respect to a national of the other Party who seeks access to its 
employment market or who is employed on a permanent basis in its territory.  
4.3.  Mode 3 is treated in Chapter 8, which appli es to measures by a Party relating to investors of 
the other Party, covered investment and all investments in the Party's territory with respect to 
performance requirements and environmental, health and other regulatory objectives (Article 8.2). 
Chapter 8 does not apply to measures on financial services covered by Chapter 10 (Article 8.3). The 
investment obligations of national and MFN treatment and senior management and boards of 
directors do not apply to Government procurement or subsidies or grants provi ded by a Party, 
including Government -supported loans, guarantees and insurance (Article 8.12). In case of any 
inconsistency between Chapter 8 and another Chapter, the other Chapter will prevail to the extent 
of the inconsistency (Article 8.3).  
4.4.  Chapter 10 o n financial services applies to financial institutions of the other Party, investors of 
the other Party and their investments in financial institutions in the Party's territory and cross -border 
trade in financial services ( Article 10.2).18 
4.5.  Chapter 11 on th e temporary entry of businesspersons applies to measures affecting the 
temporary entry of businesspersons of a Party into the territory of the other Party. It does not apply 
to measures affecting natural persons seeking access to the labour market of the other Party and to 
measures regarding citizenship, nationality, residence or employment on a permanent basis 
(Article  11.2). 
4.6.  Chapter 12 on telecommunications applies to measures relating to the access to and use of 
public telecommunications networks or  services , the obligations made by its providers and other 
related measures (Article 1 2.2). Like the GATS, the Chapter applies neither to broadcast nor to cable 
distribution of radio and television programming.   
4.2  Denial of benefits  
4.7.  A Party can deny the benefits of Chapters 8 and 9 if the service supplier or investor (or its 
investments) of the other Party is a company owned or controlled by persons of a non -party or of 
the denying Party, and has no substantial business activities in the territory of any Party other than 
the denying Party (Articles  8.15 and 9.10).19  
4.8.  An anti -circumvention clause is also part of the denial of benefits provision on cross -border 
trade in services and investments. Under the clause, a Party can also deny th e benefits of Chapter 
8 and 9 if the company is owned or controlled by a person of a third party, and the denying Party 
prohibits transactions with that third party.  
4.3  General provisions on trade in services  
4.3.1   Market access  
4.9.  Article 9.5 lists the limitations o n market access that the Parties cannot adopt or maintain 
unless otherwise specified in their lists of reservations. These mirror those found in GATS Article 
XVI.2 (a) -(e).  
4.10.   The same commitments apply with respect to financial institutions of the other Par ty and 
investors of the other Party seeking to establish a financial institution (Article  10.5).  
 
17 The Parties' commitments on market access (Article 9.5), domestic regulation (Article 9.8), 
transparency (Article 9.11) described in Chapter 9 shall apply if the financial service is supplied by a covered 
investment that is not a covered investment in the financial institution in the Party's territory.  
18 Cross -border trade in (or cross -border supply of) financial services, as defined in the Agreement, 
covers mode 1, 2 and 4 but excludes the supply of a financi al service in the territory of a Party by an 
investment in that territory (Article  10.1).  
19 The Agreement does not contain a definition for "substantial business activities".  WT/REG404/1  
 
- 22 - 
 
  4.3.2   National and MFN  treatment  
4.11.   The Parties agree to grant MFN and national treatment to:  
a) services and service providers of the other Part y (Articles 9.3 and 9.4) , and 
b) investors and covered investments of the other Part y with respect to the establishment, 
acquisition, expansion, management, conduct, operation, and sale or other disposition of 
investments (Articles 8.4 and 8.5).   
4.12.   For financial services, MFN and nati onal treatment is granted to investors, financial 
institutions, investments of investors in financial institutions, and cross -border suppliers of financial 
services of the other Party (Articles 1 0.3 and 1 0.4).  
4.13.   Exemptions from these commitments are specified in the Parties' lists of reservations 
(Annexes I, II and III). Moreover, these commitments do not apply to investments related to 
intellectual property (Article 8.12). MFN treatment is not extended to mechani sms or procedures for 
the resolution of investor -State disputes (Articles 8.5 and 10.4). 
4.3.3   Commercial presence  
4.14.   Unless listed in their reservations, a Party cannot require a services supplier of the other Party 
to establish or maintain a representative office  or any form of enterprise, or be resident in its territory 
as a condition for the cross -border supply of a service (Article 9.6).  
4.3.4   Performance requirements  
4.15.   The Agreement prohibits the application of performance requirements with respect to the 
establishmen t, acquisition, expansion, management, conduct, operation or sale or other disposition 
of an investment. Detailed provisions and applicable exceptions are found in Article 8.10.  
4.3.5   Senior management and boards of directors  
4.16.   The Parties cannot impose nationalit y requirements for senior management positions of a 
company that is a covered investment, but can require that a majority of its board of directors, or 
any committee thereof,  be of a particular nationality, or resident in the territory of the Party, 
provid ed that the requirement does not impair the ability of the investor to exercise control over its 
investment (Article 8.11).  
4.3.6   Movement of natural persons  
4.17.   Chapter 11 describes the conditions for the temporary entry of businesspersons in the Parties' 
territori es. It does not apply to measures affecting natural persons seeking access to the 
employment market of a Party and regarding citizenship, nationality, residence or employment on a 
permanent basis (Article 11.2). The Agreement defines a businessperson of a Party as a national of 
a Party who is engaged in trade in goods, the supply of services or the conduct of investment.  
4.18.   The Parties set out their commitments on the temporary entry of businesspersons in 
Annex  11-A, which are Party specific. The  Annex lists the categories of businesspersons for which 
commitments are made, the length of stay as well as any other additional requirement or 
commitment.  Conditional on compliance with their immigration legislation and the requirements set 
out in Annexes 11 -A, Australia commits to authorize the temporary entry of business visitors, 
installers and servicers, intra -corporate transferees, independent executives  and contractual 
services suppliers while Peru commits to authorize the temporary entry of business visit ors, intra -
corporate transferees, investors, professionals and technicians. Additional details on the length of 
stay for these categories of businesspersons can be found in Table A3. 1 in Annex 3.  
4.19.   A Party reserves the right to refuse entry to a businessperson of the other Party if the 
temporary entry of that person might affect adversely the settlement of any labour dispute in 
progress, or the employment of any natural person involved in such a dispute (Article 11.4).  WT/REG404/1  
 
- 23 - 
 
  4.20.   The Parties agree to make decisions on applicatio ns as expeditiously as possible and to ensure 
that fees charged by the authorities for the processing of applications are reasonable (Article 11.3). 
They agree to make information publicly available on current requirements for temporary entry, to 
indicate the typical timeframe within which an application for an immigration formality is processed 
and establish mechanisms to respond to enquiries (Article  11.5).  
4.21.   A Committee on Temporary Entry for Businesspersons is established to carry out a number 
of cooperat ion activities (Articles 11.6 and 11.7). Moreover, it shall meet on request of the Joint 
Commission to consider any matter arising under the Chapter.  
4.22.   The use of the dispute settlement mechanism under the Agreement is prohibited in case of a 
refusal to gra nt temporary entry unless it involves a matter of practice and the businesspersons 
concerned have exhausted all available administrative remedies on the matter (Article 11.9).  
4.4  Liberalization commitments  
4.23.   Commitments on cross -border trade in services and in vestment are scheduled on a negative 
list basis so that obligations on national and MFN treatment, market access, local presence, 
performance requirements and senior management and boards of directors apply to all services, 
unless specified otherwise in th e Parties' existing and future non -conforming measures listed in 
Annexes I and II, respectively.  
4.24.   Commitments in financial services for mode 3 also use a negative list while for modes 1 -2 the 
Parties apply a hybrid approach, with commitments scheduled using positive lists (Annex 1 0-A) being 
subject to negative lists ( Annex III). Annex III lists the Parties' reservations for financial services on 
existing and future measures with respect to national and MFN treatment, market access  for financial 
institutions , cross -border trade and senior management and board of directors. Reservations on 
national and MFN treatment, and senior management and boards of directors in Annexes I and II 
also apply to financial services, to the extent that the measure or activity in  the reservation is 
covered by Chapter 1 0 (Article 1 0.10). The measures in Annex I apply to central, regional and local 
levels of Government.  
4.25.   For existing non -conforming measures listed in Annex I, a standstill and a ratchet mechanism 
apply. Under the stan dstill mechanism, the Parties can maintain non -conforming measures that 
existed when the Agreement was signed, and which are listed in the Annex, but cannot increase 
their restrictiveness. Under the ratchet mechanism, any amendments that decrease the 
restrictiveness of a non -conforming measure, as it existed immediately before the amendment, are 
automatically incorporated into the Agreement.  
4.4.1   Australia  
4.4.1.1   MFN and horizontal commitments  
4.26.   Australia maintains 36 reservations, ten of which apply horizontally, and th e rest are sector 
specific, including one reservation on social services which covers more than one sector. It reserves 
the right to adopt or maintain any measure with respect to the provision of law enforcement and 
correctional services, and services rela ted to income security and insurance, social security or 
insurance, social welfare, public education, public training, health, childcare, public utilities, public 
transport and public housing to the extent that they are social services established or maint ained 
for a public purpose.  
4.27.   Australia also reserves the right to maintain all existing non -conforming measures at the 
regional level of Government but does not list them in the Agreement.20 Australia reserves under 
the Agreement and the GATS the right to a dopt or maintain any measure affecting investment and 
cross-border trade granting preferences or more favourable treatment to indigenous persons or 
organizations.  
 
20 In a side letter on State and territory measures, Australia committed to initia te a review of the 
existing non -conforming measures at the regional level of Government and to inform Peru of the results of the 
review with a list of individual non -conforming measures within 12 months of the date of entry into force.  WT/REG404/1  
 
- 24 - 
 
  4.28.   In addition, Australia imposes notification and approval requirements for foreign investment  
exceeding AUD  1,134  million  in general and exceeding AUD  261 million  in sensitive business, direct 
investment by foreign Government investors regardless of value, investment by a foreign person of 
5% or more in the media sector, acquisition by a foreign person of an interest in developed 
commercial land where the value of the interest exceeds AUD  1,134 million unless the land meets 
the conditions for the lower co -developed commercial land threshold of AUD  57 million.21  
4.29.   Under other reservations fo r future non -conforming measures Australia reserves the right to 
adopt or maintain any measure with respect to: services supplied by natural persons subject to the 
provisions of Chapter 1 1 (Temporary Entry for Business Persons) consistent with its obligati ons 
under GATS Article XVI , investments by foreign persons in Australian land , investments exceeding 
AUD 15 million in Australian agricultural land and AUD  55 million in Australian agribusinesses and 
the devolution to the private sector of services provide d in the exercise of Governmental authority 
and the privatization of Government owned entities .  
4.30.   In addition, Australia reserves the right to adopt or maintain any measure at the regional 
level of Government that is consistent with its obligations on marke t access under GATS Article XVI 
and its commitments under its GATS schedule, which have been updated for the purpose of that 
reservation. The amendments are listed in Appendix A and improve Australia's GATS commitments 
thus binding them at a higher level.  
4.31.   Finally, Australia also reserves the right to adopt or maintain any measure that accords more 
favourable treatment to any service supplier or investor under any bilateral or multilateral 
international agreement in force or signed prior to the Agreement's e ntry into force, including 
ANZCERTA , or with a Pacific Island Forum member state, and under any agreement in force or 
signed after the Agreement's entry into force involving aviation, fisheries or maritime matters 
including salvage.  
4.4.1.2   Sector specific commit ments  
4.32.   Table 4.1 compares Australia's sectoral commitments under the Agreement and under its 
GATS schedule for modes 1 -3. Horizontal limitations and MFN reservations are not taken into account 
in the table which should be read in conjunction with Annexes I, II, and III of  the Agreement 
containing Australia's schedule of specific commitments for cross -border trade in services and 
investment.  
Table 4.1 Australia: comparison between the GATS and the Agreement's specific 
commitments in trade in services  
Sectors / Subsectors  GATS  FTA 
Compared 
to GATS  Existing  
non-
conforming 
measure(s)  Reservation(s) 
for future 
measures  Investment  
Cross -border 
trade  
Investment  
Cross -border 
trade  
1. Business services        
A. Professional  Services  Partial  Improved   ✓   
B. Computer  and Related  Services  Partial  Improved      
C. Research  and Development  Services  Partial  Improved      
D. Real  Estate  Services  Partial  Improved      
E. Rental/Leasing  Services  without  Operators  Partial  Improved      
F. Other  Business  Services  Partial  Improved  ✓ ✓ ✓ ✓ 
2. Communication services        
A. Postal  services  --- Same      
B. Courier  services  --- New     
C. Telecommunication  services  Partial  Improved  ✓    
D. Audiovisual services  --- New   ✓ ✓ 
 
21 All values are as of January 2018 and indexed every subsequent year.  WT/REG404/1  
 
- 25 - 
 
  Sectors / Subsectors  GATS  FTA 
Compared 
to GATS  Existing  
non-
conforming 
measure(s)  Reservation(s) 
for future 
measures  Investment  
Cross -border 
trade  
Investment  
Cross -border 
trade  
3. Construction and related engineering 
services        
A. General  construction  work for buildings  Partial  Improved      
B. General  construction  work for civil Engineering  Partial  Improved      
C. Installation  and assembly  work  Partial  Improved      
D. Building  completion  and finishing  work  Partial  Improved      
E. Other  ---  New     
4. Distribution services        
A. Commission  agents'  services  Partial  Improved      
B. Wholesale  trade services  Partial  Improved     ✓ 
C. Retailing  services  Partial  Improved     ✓ 
D. Franchising  Full Same      
E. Other  --- New     
5. Education services        
A. Primary education services  --- Same    ✓ ✓ 
B. Secondary education services  Partial  Same      
C. Higher education services  Partial  Same      
D. Adult education  --- New     
E. Other education services  Partial  Improved      
6. Environmental services        
A. Sewage services  Full Same      
B. Refuse disposal services  Full Same      
C. Sanitation and similar services  Full Same      
D. Other  --- New     
7. Financial services        
A. All insurance  and insurance -related  services  Partial  Same  ✓ ✓ ✓ ✓ 
B. Banking  and other financial  services  Partial  Improved  ✓ ✓ ✓ ✓ 
8. Health related and social services        
A. Hospital services  --- Same      
B. Other Human Health Services  Partial  Improved  ✓    
C. Social Services  --- Same      
D. Other  --- Same      
9. Tourism and travel related services        
A. Hotels  and restaurants (including catering)  Full Same      
B. Travel  agencies  and tour operators  services  Partial  Improved      
C. Tourist  guides  services  Full Same      
D. Other  --- New     
10. Recreational and cultural and sporting 
services        
A. Entertainment  services  --- New   ✓ ✓ 
B. News agency services  Full Same      
C. Libraries, archives, museums and other cultural 
services  --- New   ✓ ✓ 
D. Sporting and other recreational services  Partial  Improved    ✓ ✓ 
E. Other  --- New   ✓ ✓ 
11. Transport services        
A. Maritime Transport Services  Partial  Improved  ✓ ✓ ✓ ✓ 
B. Internal Waterways Transport  --- New   ✓ ✓ 
C. Air Transport  Services  Partial  Improved  ✓ ✓ ✓ ✓ 
D. Space  Transport  --- New     
E. Rail  Transport  Services  --- New     
F. Road  Transport  Services  Partial  Improved      
G. Pipeline  Transport  Full Same      
H. Services  auxiliary  to all modes  of transport  Partial  Improved      
I. Other  Transport  Services  --- New     
12. Other services not included elsewhere  --- Same      
Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
Partial:  GATS commitments subject to some limitation(s) under market access or national treatment, under 
any of the three modes.  
---: No specific commitment (unbound) under GATS or full exclusion of the whole sector  under the 
Agreement.  WT/REG404/1  
 
- 26 - 
 
  New: New commitments made under the Agreement (full or partial, with or without market access 
commitments and/or limitations). "New" can always be seen as "improved".  
Improved: Overall improved commitments made under the Agreement as compared to those under the GATS.  
✓: Existing non -conforming measures or reservations for future measures scheduled in Annex I and/or 
Annex  II of the Agreement.  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/ AUS), prepared by th e 
Secretariat and Australia 's Schedules annexed to the Agreement.  
 
4.33.   In business  services, Australia replicated its GATS commitments in most professional services 
while adding full commitments in accounting, auditing and book keeping services, restricted unde r 
the GATS, and landscape architectural services, excluded under the GATS. It made some 
commitments in legal services, excluded under the GATS but imposed nationality or establishment 
requirements for migration agents, company auditors  and patent attorneys . It also made full 
commitments in computer and related services, R&D services, real estate services and rental/leasing 
services, all subject to limitations under the GATS . In other business services, Australia expanded 
its GATS sectoral coverage  and made full commitments in all activities except for fishing and services 
incidental to fishing for which foreign vessels are subject to authorizations and levies.  
4.34.   In telecommunications services, restricted under the GATS, Australia maintains an equity 
ceiling o n ownership and restrictions on the composition of the board of directors of Telstra. It also 
made commitments in audio -visual services, unbound under its GATS schedule , reserving the right 
to adopt or maintain  any measure granting preferential co-production arrangements for film and 
television productions . Australia reserves the right to adopt or maintain any measure with respect 
to, inter alia , transmission quotas for local content for free-to-air commercial television and radio 
broadcasting se rvices, spectrum management and the licensing of broadcasting services.   
4.35.   In construction services, Australia made full commitments  with no reservations listed under 
the Agreement.  
4.36.   In distribution services, Australia reserves the right to adopt or maintain any measure with 
respect to wholesale and retail trade services of tobacco products, alcoholic beverages or firearms.  
4.37.   Australia's only limitation  in education services under the Agreement is that it reserves the 
right to adopt or maintain any measure with respect to primary education.  
4.38.   With respect to environmental services, as under the GATS , no limitations are listed  for 
sewage, refuse disposal and sanitation and similar services.22 At the same time, n ew commitments 
with no limitations are included for services for the protection of ambient air and climate, remediation 
and clean -up of soil and water, noise and vibration abatement, the protection of biodiversity and 
landscape and other envi ronmental and ancillary services.  
4.39.   In financial services , Australia imposes residency requirements on the directors of private and 
public companies operating in the financial sector and reserves the right to maintain all existing non -
conforming measures at  the regional level of Government.  Moreover, it  reserves the right to adopt 
or maintain any measure with respect to the Government guarantee of Government owned entities 
whose operations include the provision of financial services. In addition, some subsec tor-specific 
reservations apply. In insurance services, Australia requires that the approval of non -resident life 
insurers is restricted to subsidiaries incorporated under Australian law. In banking and other financial 
services, Australia imposes restricti ons on deposit taking by branches of foreign banks and on the 
scope of operations of representative offices of foreign banks. Liabilities of the Commonwealth Bank 
are covered by transitional guarantee arrangements.  
4.40.   Health related and social services  are subject to a broad reservation on social services allowing 
the application of any non -conforming measure with respect to cross -border trade and investment 
in services established or maintained for public purposes, including health and childcar e services. It 
also listed a reservation for the activities and senior management of Commonwealth Serum 
Laboratories.  
 
22 Australia based its classification scheme under the Agreement on the scheme proposed by the 
European Communities in 2000 (document S/CSS/W/38). Commitments under the Agreement exclude the 
provision of water for human use, including water collection, purif ication and distribution through mains.  WT/REG404/1  
 
- 27 - 
 
  4.41.   Australia made full commitments in tourism and travel related services, which under the GATS 
are subject to limitations.  
4.42.   In recreational,  cultural and sporting services Australia reserves the right to adopt or maintain 
any measure with respect to gambling, betting, creative arts, indigenous traditional cultural 
expressions and other cultural heritage activities.  
4.43.   In maritime transport servic es, Australia broadens its GATS commitments, which partially 
include maritime, air and road services and services auxiliary to all modes of transport but lists some 
reservations. In maritime services, it listed reservations for international liner cargo sh ipping 
services and ships. It also reserves the right to adopt or maintain any measure with respect to 
maritime cabotage services and offshore transport services. In air transport services, Australia 
places restrictions on the equity ownership of Australia n international airlines (including Qantas), 
and reserves the right to adopt or maintain any measure with respect to investment in federal leased 
airports and the provision of ground handling and airport operation services. In services auxiliary to 
all mod es of transport, Australia requires customs brokers to supply their services in and from 
Australia. Finally, Australia reserves the right to adopt or maintain any non -conforming measure 
with respect to cross -border trade and investment in services establis hed or maintained for public 
purpose, including public transportation.  
4.4.2   Peru  
4.4.2.1   MFN and horizontal commitments  
4.44.   Peru maintains 53 reservations, five of which apply horizontally, and the rest are sector 
specific, including one reservation on social services whi ch covers more than one sector. Peru 
reserves the right to adopt or maintain any measure with respect to the provision of law enforcement 
and correctional services, and services related to income security and insurance, social security, 
social welfare, pub lic education, public training, health, childcare, and public utilities to the extent 
that they are social services established or maintained for a public purpose.   
4.45.   Peru also reserves, under the Agreement and the GATS, the right to adopt or maintain any 
measure affecting investment and cross -border trade granting rights and preferences to socially or 
economically disadvantaged minorities and indigenous, native and peasant communities.  
4.46.   Peru's horizontal limitations under the GATS are maintained in the Agree ment. All employers 
in Peru, independent of their activities or nationality, shall give preferential treatment to nationals 
when hiring, at least 80% of the staff of a company established in Peru shall be Peruvian, and shall 
represent at least 70% of the t otal payroll of the company. Investments in a frontier area of 50 km 
are reserved for nationals. Furthermore, Peru reserves the right to apply market access limitations 
in all services sectors, except for some sectors  and subsectors for which modes 1, 2 an d 3 are 
liberalized. Thus, only the sectors indicated in the reservation are subject to the market access 
commitment, to the benefit of Australian suppliers.  
4.47.   Peru's GATS MFN exemptions cover measures implementing its reciprocal labour agreements 
or on dual  nationality, land and sea transport measures taken in the Andean context, land transport 
measures implementing the Convention on International Land Transport, the law promoting Latin 
American artists interpreting Latin American themes and certain measures  designed to ensure 
reciprocity for certain financial intermediation services.  
4.48.   Under the Agreement, Peru lists MFN non -conforming measures on broadcasting services 
within border areas, subject to authorization, for existing measures. Existing and future M FN 
reservations are also registered, in all sectors, that accord differential treatment to countries under 
any bilateral or multilateral agreements in force on, or signed prior to, the date of entry into force 
of the Agreement. The granting of differential  treatment is also reserved for future bilateral or 
multilateral agreements involving aviation, fisheries or maritime matters, including salvage.  
4.49.   Future MFN non -conforming measures could also be adopted in matters related to artisanal 
fishing, cultural ind ustries, handicraft, audiovisual industries, jewellery design and other artistic 
activities, public supply of potable water and public sewage services, certain education services, WT/REG404/1  
 
- 28 - 
 
  domestic and international land transportation of cargo or passengers, air t ransport services, and 
telecommunication services.  
4.4.2.2   Sector specific commitments  
4.50.   Table 4.2 compares Peru's sectoral commitments under the Agreement and under its GATS 
schedule for modes 1 -3. Horizontal limitations and MFN reservations are not taken into account in 
the table which should be read in conjunction with Annexes I, II, and III of the Agreement containing 
Peru's schedule of specific commitments for cross -border t rade in services and investment.  
Table 4.2 Peru: comparison between the GATS and the Agreement's specific 
commitments in trade in services  
Sectors / Subsectors  GATS  FTA 
Compared 
to GATS  Existing  
non-
conforming 
measure(s)  Reservation(s) 
for future 
measures  Investment  
Cross -border 
trade  
Investment  
Cross -border 
trade  
1. Business services        
A. Professional  Services  Partial  Improved  ✓ ✓  ✓ 
B. Computer  and Related  Services  --- New     
C. Research  and Development  Services  --- New  ✓  ✓ 
D. Real  Estate  Services  --- New     
E. Rental/Leasing  Services  without  Operators  Partial  Improved     ✓ 
F. Other  Business  Services  Partial  Improved  ✓ ✓ ✓ ✓ 
2. Communication services        
A. Postal  services  --- New    ✓ 
B. Courier  services  --- New    ✓ 
C. Telecommunication  services  Partial  Improved  ✓ ✓  ✓ 
D. Audiovisual services  --- New ✓ ✓ ✓ ✓ 
3. Construction and related engineering 
services        
A. General  construction  work for buildings  --- New    ✓ 
B. General  construction  work for civil Engineering  --- New    ✓ 
C. Installation  and assembly  work  --- New    ✓ 
D. Building  completion  and finishing  work  --- New    ✓ 
E. Other  --- New    ✓ 
4. Distribution services        
A. Commission  agents'  services  --- New     
B. Wholesale  trade services  --- New     
C. Retailing  services  Partial  Improved      
D. Franchising  Partial  Improved      
E. Other  --- New     
5. Education services        
A. Primary education services  --- New    ✓ 
B. Secondary education services  --- New    ✓ 
C. Higher education services  --- New    ✓ 
D. Adult education  --- New    ✓ 
E. Other education services  --- New    ✓ 
6. Environmental services        
A. Sewage services  --- New    ✓ 
B. Refuse disposal services  --- New    ✓ 
C. Sanitation and similar services  --- New    ✓ 
D. Other  --- New    ✓ 
7. Financial services        
A. All insurance  and insurance -related  services  Partial  Improved   ✓  ✓ 
B. Banking  and other financial  services  Partial  Improved   ✓   
8. Health related and social services        
A. Hospital services  --- New    ✓ 
B. Other Human Health Services  --- New    ✓ 
C. Social Services  --- New   ✓ ✓ 
D. Other  --- New    ✓ 
9. Tourism and travel related services        
A. Hotels  and restaurants (including catering)  Partial  Improved      WT/REG404/1  
 
- 29 - 
 
  Sectors / Subsectors  GATS  FTA 
Compared 
to GATS  Existing  
non-
conforming 
measure(s)  Reservation(s) 
for future 
measures  Investment  
Cross -border 
trade  
Investment  
Cross -border 
trade  
B. Travel  agencies  and tour operators  services  Partial  Improved      
C. Tourist  guides  services  --- New     
D. Other  --- New     
10. Recreational and cultural and sporting 
services        
A. Entertainment  services  Partial  Improved   ✓ ✓ ✓ 
B. News agency services  --- New     
C. Libraries, archives, museums and other cultural 
services  --- New   ✓ ✓ 
D. Sporting and other recreational services  Partial  Improved      
E. Other  --- New     
11. Transport services        
A. Maritime Transport Services  Partial  Improved  ✓ ✓  ✓ 
B. Internal Waterways Transport  Partial  Improved  ✓ ✓  ✓ 
C. Air  Transport  Services  --- New ✓ ✓  ✓ 
D. Space  Transport  --- New    ✓ 
E. Rail  Transport  Services  --- New  ✓ ✓ ✓ 
F. Road  Transport  Services  --- New  ✓ ✓ ✓ 
G. Pipeline  Transport  --- New    ✓ 
H. Services  auxiliary  to all modes  of transport  --- New  ✓  ✓ 
I. Other  Transport  Services  --- New    ✓ 
12. Other services not included elsewhere  --- New     
Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
Partial:  GATS commitments subject to some limitation(s) under market access or national treatment, under 
any of the three modes.  
---: No specific commitment (unbound) under GATS or full exclusion of the whole sector  under the 
Agreement.  
New: New commitments made under the Agreement (full or partial, with or without market access 
commitments and/or limitations). "New" can always be seen as "improved".  
Improved: Overall improved commitments made under the Agreement as compared to those under the GATS.  
✓: Existing non -conforming measures or reservations for future measures scheduled in Annex I and/or 
Annex  II of the Agreement.  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/PER), prepared by th e 
Secretariat and Peru's Schedules annexed to the Agreement.  
 
4.51.   As regards business services, non -conforming measures under the Agreement have been 
listed for notaries, auditing and architectural services, archaeological services, advertising services, 
services incidental to fishing, energy, and investigation and security. Nationality requirements apply 
for notaries and personal and property security services providers. Architects, whether national or 
foreign, must be members of the Register of  Architects.23 Auditing companies can be constituted 
only by registered public accountants residing in Peru. Foreign directors of archaeological 
program mes and projects must be complemented by a Peruvian director with the same 
responsibilities. National ar tists and technicians must account for at least 80% of commercial 
advertising and their payroll must be at least 60% of the total. Various restrictions for foreign 
shipowners are scheduled. As to energy services, r estrictions on the conclusion of explorati on 
contracts include registration, establishment of local branches, domiciliation in the capital of Peru 
and appointment of a Peruvian national as executive agent . 
4.52.   Regarding communication services, market access commitments have been taken for the 
addition al subsectors of telecommunication s as well as audiovisual services, subject however to 
limitations. These apply to existing measures in telecommunication services, particularly on call -back 
services (as under the GATS), audiovisual services (through a "cu ltural" reservation) and radio 
diffusion. Market access limitations on telecommunications are restricted to the need for having a 
 
23 Requirements for the membership differ between nationals and foreigners.  WT/REG404/1  
 
- 30 - 
 
  concession, authorization or registration. Postal and courier services are liberalized except for the 
possibility of impos ing any future restrictions.   
4.53.   Peru reserves the right to adopt or maintain any measure relating to market access for cross -
border trade in services for all construction services except consulting services related to 
construction for which there are no limitati ons.  
4.54.   Distribution services, with the exception of  hydrocarbons for commission agents and 
wholesalers and alcohol and tobacco for retailers, are fully liberalized as regards modes 1 -3 for 
market access and no reservations have been taken.  
4.55.   Peru reserves the right to adopt or maintain any measure relating to market access for cross -
border trade in services for all education services except higher education services  for which all 
limitations on mode 2 are eliminated.  
4.56.   No limitations remain for consulting services related to environment while Peru reserves the 
right to adopt or maintain any measure relating to market access for cross -border trade in services 
for all other environmental services.   
4.57.   Regarding financial services, c apital requirements are scheduled in Annex III for financial 
institutions establishe d in Peru through a branch providing insurance or banking services. Moreover, 
financial institutions providing banking and other financial services must be constituted under the 
laws of Peru and rated by credit rating companies. Peru may grant advantages o r exclusive rights 
to some financial entit ies as long as they are partially or fully owned by the State. It also reserves 
the right to adopt or maintain measures that restrict the acquisition of obligatory insurance outside 
Peru, or that require that oblig atory insurance be purchased from suppliers established in Peru.  
4.58.   Peru reserves the right to adopt or maintain any measure relating to market access for cross -
border trade in services for all health -related services.  
4.59.   Tourism and travel related services ar e fully liberalized as regards modes 1 -3 for market 
access and no reservations have been taken.  
4.60.   Recreational and cultural and sporting services are fully liberalized as regards modes  1-3 for 
market access, but reservations apply to circus services and bull fighting with respect to the share 
of nationals and their wages.  
4.61.   For transport services, non -conforming measures apply to freight transportation (for maritime 
and road transport services), support services for road transport services, and certain services 
auxiliary to all modes of transport (storage and warehouse services), and services related to 
passenger transportation (maritime transport services and internal waterways transport). Peru also 
reserves commercial national aviation for Peruvian natural and juridical persons.  
4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.62.   Article 9.8 on domestic regulation replicates some of the provisions of GATS Article VI but 
also includes several new provisions. The Parties recognize the right to regulate and introduce new 
regulations on the supply of services in order to meet their pol icy objectives while ensuring that 
measures are based on objective and transparent criteria, are not more burdensome than necessary 
to ensure the quality of the service and, in the case of licensing procedures, are not in themselves 
a restriction on the su pply of the service. The Parties agree that where authorisation is required for 
the supply of a service, they shall establish an indicative timeframe for the processing of applications 
to the extent practicable, inform applicants of the reasons for the rej ection of an application, provide 
them with the opportunity to correct minor errors and omissions in the application, accept copies of 
documents that are authenticated in place of original documents in accordance with the Party's laws, 
reach and administer  decisions in an independent manner, avoid requiring an applicant to approach 
more than one competent authority and endeavour to accept applications in electronic format.  WT/REG404/1  
 
- 31 - 
 
  4.63.   Authorization fees shall be reasonable, transparent and not restrict the supply of t he relevant 
service. If licensing or qualification requirements include the completion of an examination, the 
examination is to be scheduled at reasonable intervals and in a reasonable period of time to enable 
interested persons to submit an application. I n addition, procedures are to be put in place 
domestically to assess the competency of professionals of the other Part y. The provisions on 
domestic regulation do not apply to the non -conforming aspects of measures regarding national 
treatment and market ac cess reserved in Annexes I and II.  
4.64.   If the results of the negotiations under paragraph 4 of Article VI of the GATS, or the results 
of any similar negotiations undertaken in other fora enter into effect, the Parties shall jointly review 
the results with a vi ew to bringing them into effect, as appropriate, under the Agreement.  
4.5.2   Recognition  
4.65.   Article 9.9 on the recognition of professional qualifications of service suppliers reproduces 
paragraphs 1 to 3 of Article VII of the GATS but also adds new provisions. The P arties clarify that 
when a Party recognizes, autonomously, or by agreement the education or experience obtained, 
requirements met, or licenses or certifications granted in the territory of the other Party or a third 
party, the Party is not obliged to accor d the same recognition to the other Party. Moreover, the 
Parties shall endeavour to facilitate trade in professional services including through the 
establishment of a Professional Services Working Group as set out in Annex 9 -A. The Working Group 
shall meet  annually, or as agreed by the Parties, and shall report to the Agreement's Commission 
on its progress and on the future direction of its work within two years of the Agreement's entry into 
force.  
4.66.   In Annex 9 -A the Parties agree to consider taking steps to  implement a licensing or 
registration regime based on a foreign supplier's home license or recognized membership of a 
professional body, without the need for further written examination.  
4.67.   More specifically, f or engineering and architectural services, they  recognize APEC's work in 
promoting mutual recognition of professional competence and professional mobility within the APEC 
region through the APEC Engineer and APEC Architect frameworks, which includes the maintenance 
of an engineer and architect register  by country. Each Party shall encourage its relevant bodies to 
work towards becoming authorised to operate such registers and enter into mutual recognition 
arrangements.  
4.68.   In legal services, the Parties recognize that transnational legal services that cover  the laws of 
multiple jurisdictions play an essential role in facilitating trade and investment and in promoting 
economic growth and business confidence. If a Party regulates or seeks to regulate foreign lawyers 
and transnational legal practice,  they shall  encourage their relevant bodies to take into account, 
subject to their laws and regulations, the working practices described in paragraph 8 of Annex 9 -A. 
4.69.   In a side letter on education recognition, the Parties decide to maintain a dialogue with the 
aim of facilitating the supply of professional services between them and to cooperate on recognition. 
Peru encourages its competent authority to recognise Australian higher education qualification s while 
Australia encourages its competent authorities to actively participate in the Professional Services 
Working Group towards the facilitation of the supply of Peruvian professional services in Australia.  
4.5.3   Subsidies  
4.70.   Chapter 9 of the Agreement does not apply to subsidies or grants  provided by a Party, 
including Governm ent-supported loans, guarantees and insurance (Article 9.2) . 
4.5.4   Safeguards  
4.71.   The Agreement allows the Parties to impose temporary safeguard measures affecting cross-
border capital transactions , payments or transfers in the event of serious balance of payments or 
macroeconomic difficulties or threats thereof  (Article 28.3) . Such measures must be consistent with 
the Parties' national and MFN treatment  obligations under the Agreement  as laid out in Chapters 8, 
9 and 10 and with IMF clauses. Moreover, they  must be temporary  and progressively phased out 
and they are subject to notification. Measures should not exceed those necessary to deal with the WT/REG404/1  
 
- 32 - 
 
  circumstances and shall avoid unnecessary damage to the commercial, economic and financial 
interest of the oth er Party.  
4.5.5   Investment  
4.72.   Chapter 8 deals with investment and applies to measures adopted or maintained by a Party 
at the central, regional and local level of Government relating to a) investors of the other Party, b) 
covered investments24, and c) with respect to performance requirements and environmental, health 
and other regulatory objectives, all investments in the territory of that Party (Article 8.2). In the 
event of any inconsistency between Chapter 8 and another Chapter of the Agreeme nt, the other 
Chapter prevails (Article 8.3).  
4.73.   The Parties agree to accord to covered investments a minimum standard of treatment in 
accordance with applicable customary international law principles, including fair and equitable 
treatment and full protectio n and security (Article 8.6).25  
4.74.   No Party shall expropriate or nationalize a covered investment either directly or indirectly 
through measures equivalent to expropriation or nationalization except for public purposes , in a non -
discriminatory manner , on pay ment of prompt, adequate and effective compensation and in 
accordance with due process of law  (Article  8.8).26 The provision on expropriation does not apply to 
the issuance of compulsory licenses granted in accordance with the TRIPS Agreement.  
4.75.   Nothing in C hapter 8 shall prevent a Party from adopting, maintaining or enforcing measures 
otherwise consistent with the Chapter to ensure that its investment activity is undertaken in a 
manner sensitive to environmental, health or other regulatory objectives (Articl e 8.16). The Parties 
also reaffirm the importance of encouraging enterprises to voluntarily incorporate internationally 
recognized standards, guidelines and principles of corporate social responsibility (Article 8.17). 
4.76.   In addition, Chapter 8 includes provi sions dealing with treatment in case of armed conflict or 
civil strife (Article 8.7), transfers (Article 8.9), non -conforming measures (Article 8.12), subrogation 
(Article  8.13) and special formalities and information requirements (Article  8.14).  
4.77.   Finally,  Section B of Chapter 8 provides for a mechanism for the settlement of disputes 
between an investor and the host Party, which is described in section 5.6  of this rep ort. 
Furthermore, Parties agreed that no claim may be brought under Section B in relation to a measure 
that is designed and implemented to protect or promote public health.   
4.6  Sector specific provisions on trade in services  
4.6.1    Financial services  
4.78.   The Agreement deals with financial services in Chapter 10 which applies to measures by a 
Party affecting financial institutions of the other Party, investors of the other Party, and their 
investments in financial institutions in the Party's territory, and cross -border t rade in financial 
services (Article 10.2).27 As in the GATS, it does not apply to measures related to activities or 
services forming part of a public retirement plan or social security system or for the account, or with 
the guarantee of the Party or using its financial resources. Government procurement of financial 
services and subsidies or grants with respect to the cross -border supply of financial services are also 
excluded from the scope of the Chapter.28  
 
24 A covered investment means, with respect to a Party, an investment in its territory of an investor of 
the other Party in existence as of the date of entry into force of the Agreement for those Parties, or 
established, acquired or expanded thereafter (Article 8.1).  
25 Article 8.6 is to be interpreted in accordance with Annex 8 -A according to which the Parties confirm 
their shared understandin g that customary international law results from a general and consistent practice of 
States that they follow from a sense of legal obligation.  
26 The article on expropriation and compensation is to be interpreted in accordance with Annex 8 -B 
(Expropriation) . 
27 Financial services are defined as in the GATS Annex on Financial Services.  
28 Subsidies or grants with respect to the cross -border supply of financial services include Government -
supported loans, guarantees and insurance.  WT/REG404/1  
 
- 33 - 
 
  4.79.   The Chapter contains the Parties' liberalization commitments in financial services as well as 
regulatory provisions, which are built upon those in the GATS Annex on Financial Services and the 
Understanding on Commitments in Financial Services (hereafter th e GATS Understanding).  
4.80.   The Parties allow the cross -border supply (mode 1) of the financial services specified in 
Annex  10-A (Article 10.6). The y also agree to allow their nationals and any person located in their 
territory (mode  2) to purchase financial s ervices from a provider of the other Party located in the 
territory of a Party other than the permitting Party but they are not obliged to authorize the suppliers 
to do business or advertise in their territory. They also reserve the right to require the re gistration 
or authorization of cross -border financial service suppliers of the other Party and of financial 
instruments.  
4.81.   Commitments in financial services for mode 3 also use a negative list while for modes 1 -2 the 
Parties apply a hybrid approach, with com mitments scheduled using positive lists (Annex 10 -A) being 
subject to negative lists (Annex III) . Reservations with regard to the obligations of national 
treatment, MFN, market access for financial institutions, cross -border trade and senior management 
and boards of directors are scheduled in Annex III (Article 10.10).  
4.82.   The Parties commit to grant national treatment to financial institutions of the other Party that 
are willing to supply a new financial service but reserve the right under the Agreement to ap ply 
authorization conditions and impose the legal form of the institution willing to provide such service 
(Article 10.7).  
4.83.   Chapter 10 also contain s provisions on MFN and national treatment, exceptions and prudential 
measures, market access , the treatment o f financial and confidential information, senior 
management requirements, recognition, regulatory transparency, self -regulatory organizations, 
access to payments and clearing systems, expedited availability of insurance services, performance 
of back -office  functions, consultations, dispute settlement , portfolio management, transfer of 
information and transparency . These provisions are to a large extent more detailed than those under 
the GATS Annex on Financial Services and the GATS Understanding, and in som e cases deal with 
new topics such as the importance of having regulatory procedures to expedite the offering of 
insurance services, or arbitrary requirements on the performance of back -office functions.  
4.6.2   Telecommunications  
4.84.   The Agreement includes a separate  chapter on telecommunications (Chapter 12), which 
applies to any measure relating to the access to and use of public telecommunications services, 
obligations regarding suppliers of public telecommunications services and any other measure relating 
to telec ommunications services (Article 12.2). The Chapter does not apply to measures relating to 
broadcast or cable distribution of radio or television programming, except for the provisions on the 
access to and use of public telecommunications services which app ly to cable or broadcast service 
suppliers and those on transparency which apply to technical measures affecting public 
telecommunications services.29  
4.85.   Chapter 12 expands upon the GATS Annex on Telecommunications and Reference Paper. It 
includes provisions  on the access to and use of public telecommunications services, which ensures 
that any enterprise of the other Party has access to and use of any public telecommunications 
service, including leased circuits, offered on the Party's territory or across its borders, on reasonable 
and non -discriminatory terms and conditions. No conditions should be imposed on access to and use 
of public telecommunications services, other than necessary to safeguard the public service 
responsibilities of the suppliers or protec t the technical integrity of public telecommunications 
services or networks. If conditions are imposed they may include a requirement to use a specified 
technical interface for connection with those networks or services, a requirement, if necessary, for 
the interoperability of the networks or services, type approval of terminal or other equipment, or a 
licensing , permit, registration or notification procedure which should be transparent and provide for 
 
29 For greater clarity, nothing in the Chapter requires a Party: a) to compel an enterprise to establish, 
construct, acquire, lease, operate or provide a telecommunications network or service not offered to the public, 
b) to compel an enterprise exclusively engaged in the broadcast or ca ble distribution of radio or television 
programming to make available its broadcast or cable facilities as a public telecommunications network, or c) 
to prevent a Party from prohibiting a person who operates a private network from using such network to 
supply a public telecommunications network or service to third persons.  WT/REG404/1  
 
- 34 - 
 
  the processing of applications filed thereunder in accordance with a Party's laws or regulations. 
Article 12.5 sets out obligations relating to suppliers of public telecommunications services including 
interconnection, number portability and access to numb ers. 
4.86.   The Chapter also includes provisions on international mobile roaming, treatment by major 
suppliers of public telecommunications services, competitive safeguards, resale, unbundling of 
network elements by major suppliers, interconnection with major suppliers, provisioning and pricing 
of leased ci rcuits services, co -location by major suppliers, access to poles, ducts, conduits and rights -
of-way owned or controlled by major suppliers, independence of regulators, universal service, 
licensing , allocation and use of scarce resources,  enforcement,  the resolution of telecommunications 
disputes , transparency and flexibility in the choice of technology (Article s 12.6 to 12.22) .  
4.87.   In the event of any inconsistency between Chapter 12 and another Chapter of the Agreement, 
Chapter 12 shall prevail to the extent of the inconsistency (Article 12.23).  
4.88.   The Parties recognise the importance of international standards for global compatibility and 
interoperability of telecommunications networks and services and undertake to promote those 
standards through the work of re levant international organisations (Article 12.24).  
5  GENERAL PROVISIONS OF THE AGREEMENT  
5.1  Transparency  
5.1.  Section B of Chapter 2 5 addresses transparency. It includes the obligation to publish laws, 
regulations, procedures, and administrative rulings of general application with respect to any matter 
covered by the Agreement  (Article 25.2),  principles of consistency and impartiality applicable to 
administrative proceedings  (Article 25.3),  the establishment or maintenance of judicial, quasi -
judicial or administrati ve tribunals or procedures for the prompt review and correction of a final 
administrative action on any matter covered by the Agreement  (Article 25.4)  and the provision of 
information on proposed or actual measure affecting the operation of the Agreement  (Article 25.5) .  
5.2.  Other transparency disciplines are included in a number of Chapters.  
5.2  Current payments and capital movements  
5.3.  With respect to trade cross -border trade in services, as well as with respect to investment, 
each Party shall permit all transfers r elating to the cross -border supply of services and/or a covered 
investment to be made freely and without delay into and out of its territory (Articles 9.12 and 8.9).  
5.3  Exceptions  
5.3.1   General exceptions  
5.4.  Article XX of the GATT 1994 is incorporated into the Agreeme nt and made applicable to the 
trade relations between the Parties under most provisions of the Agreement, which govern trade in 
goods between the Parties (Article 28.1).30  
5.5.  Paragraphs (a), (b) and (c) of Article XIV of the GAT S are incorporated into the Ag reement and 
made applicable to the trade relations between the Parties under most provisions of the Agreement, 
which govern trade in services between the Parties.31 
 
30 The Chapters covered are 2 (national treatment and market access for goods), 3 (rules of origin and 
origin procedures), 4 (customs administration and trade facilitation), 6 (SPS measure s), 7 (TBT); and 16 
(State -owned enterprises and designated monopolies).  
31 The Chapters covered are 9 (Cross -Border Trade in Services), Chapter 11 (Temporary Entry for 
Businesspersons), Chapter 12 (Telecommunications), Chapter 13 (Electronic Commerce) and Chapter 16 
(State -Owned Enterprises and Designated Monopolies).  WT/REG404/1  
 
- 35 - 
 
  5.3.2   Security exceptions  
5.6.  Borrowing language from Article XXI of the GATT 1994, Article XIV bis of the GATS, and Article 
73 of the TRIPS  Agreement , Article 2 8.2 allows a Party to derogate from any provision of the 
Agreement when it considers that a measure is necessary to fulfil its obligations to maintain or 
restore international peace or securi ty, or to protect its own essential security interests.  
5.3.3   Taxation  
5.7.  As a principle, nothing in the Agreement shall apply to taxation measures (Article 28.4).  
However, t he Agreement grants rights or impose obligations with respect to taxation measures 
where co rresponding rights and obligations are also granted or imposed under the WTO Agreement 
or under Chapter 2 (national treatment and market access for goods) or Article 8.10 (performance 
requirements)  under certain conditions . 
5.8.  Nothing in the Agreement shall a ffect the rights and obligations of any Party under any tax 
convention. In the event of any inconsistency between the Agreement and any tax convention, that 
convention shall prevail to the extent of the inconsistency. If an issue of inconsistency arises be tween 
the Agreement and a tax convention between the Parties, the Agreement foresees that the matter 
be first addressed by the authorities designated by each Party with a view to determine the existence 
(or not) and extent of any alleged inconsistency.32 It is only at a later stage that the issue may be 
referred to the mechanism established under Chapter 2 7 to settle disputes or under Chapter 8 on 
investment . 
5.4  Accession and withdrawal  
5.9.  The Agreement does not include provisions on accession.  
5.10.   Article 29.5 has provisions  on termination. Either Party may terminate the Agreement by 
written notification to the other Party. The Agreement shall terminate six months after the date of 
such notification, or on any other date as the Parties may agree.  
5.5  Institutional framework  
5.11.   Under Chapter 26, the Agreement establishes a Joint Commission (hereinafter the 
Commission) to, inter alia , consider any matter relating to the implementation or operation of the 
Agreement and supervise the work of all other committee s and working groups established under 
the Agreement (Articles 26.1 and 26.2). The Chapter contains provisions on decision -making by 
consensus, rules of procedure of the Commission and the establishment of overall contact points to 
facilitate communication  between the Parties (Articles 26.3 through 26.5).  
5.6  Dispute settlement  
5.12.   While cooperation is required between the Parties at all times to endeavour to agree on the 
interpretation and application of the Agreement (Article 27.2), a dispute settlement mechanis m 
between the Parties is established under Chapter 27. The mechanism applies with respect to the 
interpretation or application of the Agreement, when a Party considers that an actual or proposed 
measure by the other Party is , or would be , inconsistent with an obligation of the Agreement or any 
nullification or impairment in a case of non -violation.  
5.13.   Article 27.4 provides for the choice of forum. Disputes arising on the same matter under the 
Agreement and any other international agreement t o which the disputing Parties are party, including 
the WTO Agreements, may be settled in either forum at the discretion of the complaining Party. 
Once the forum is selected, it shall be used to the exclusion of the other in respect of the matter 
under disp ute. 
 
32 The designated authorities are the Secretary to the Treasury, or its successor, or an authorised 
representative of the Secretary for Australia and the General Director of International Econo my, Competition 
and Productivity Affairs or its successor for Peru.  WT/REG404/1  
 
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  5.14.   Consultations may be requested by a Party for the purposes of reaching a mutually acceptable 
solution (Article 27.5).  
5.15.   Good offices, conciliation and mediation are procedures that are undertaken voluntarily if the 
Parties so agree (Article 27.6). They  may begin and be terminated at any time and may continue 
while proceedings of a panel established in accordance with Chapter 27 are in progress.  
5.16.   An Arbitration Panel may be requested and established if the dispute is not resolved through 
consultations wit hin 60 days or any other period agreed by the Parties (Article 27.7).33 The panel 
shall comprise three members who shall be appointed in accordance with Articles 27.9 and 27.10, 
which govern the composition of panels and the qualifications of panellists. T he terms of reference 
of panels are defined in Article 27.8. The function of panels as well as the rules of procedure for 
panels and the role of experts are established in Articles 27.11 through 27.13.  
5.17.   Panel proceedings may be suspended or terminated (Arti cle 27.14). The panel shall normally 
present its initial report within 150 days from the date of appointment of the last panellist 
(Article  27.15). The panel shall present to the Parties a final report no later than 30 days after the 
presentation of the in itial report (Article 27.16).  
5.18.   The responding Party shall, whenever possible, eliminate the non -conformity or the 
nullification or impairment in a reasonable period of time if it is not practicable to do so immediately 
as agreed between the disputing Parti es (Article 27.17). If the Parties cannot agree on a reasonable 
period of time, the matter is referred to the chair of the panel to determine the reasonable period 
through arbitration.  
5.19.   If the responding Party does not intend to eliminate the non -conformity  or the nullification or 
impairment, or if there is disagreement between the disputing Parties as to whether the responding 
Party has eliminated the non -conformity or the nullification or impairment, the responding Party 
shall, if requested, enter into neg otiations with a view to agreeing mutually acceptable compensation 
(Article 27.18). If the Parties are unable to agree on compensation, or if they agreed on 
compensation but the complaining Party considers that the responding Party has failed to observe 
the terms of the agreement, the complaining Party may suspend benefits following procedures. 
Suspension of benefits may not take place if the responding Party provides written notice to the 
complaining Party that it will pay a monetary assessment. Compensati on, suspension of benefits and 
the payment of a monetary assessment shall be temporary and not preferred to full implementation 
through elimination of the non -conformity or the nullification or impairment. Such measures shall 
only be applied until the resp onding Party has eliminated the non -conformity or the nullification or 
impairment, or until a mutually satisfactory solution is reached.  
5.20.   A compliance review is foreseen and governed by Article 2 7.19. 
5.21.   Section B of Chapter 27 regulates domestic proceedings and private commercial dispute 
settlement.  
5.22.   With respect to private rights, no Party shall provide for a right of action under its law against 
the other Party on the ground that a measure of that other Party is inconsistent with its obligations 
under the Ag reement, or that the other Party has otherwise failed to carry out its obligations under 
the Agreement (Article 2 7.20). 
5.23.   With respect to the settlement of international commercial disputes between private parties 
in the free trade area, each Party shall, to  the maximum extent possible, encourage and facilitate 
the use of arbitration and other means of alternative dispute resolution (Article 2 7.21).  
5.24.   With respect to disputes between investors and the Parties, an investor -State dispute 
settlement mechanism (IS DS) is established in Section B of Chapter 8.  Before submitting a claim to 
arbitration, the claimant and respondent should seek to resolve the dispute through consultation 
and negotiation.  A claimant may submit a claim to arbitration that the respondent ha s breached an 
obligation under Section A of Chapter 8 on condition that the claimant has incurred loss or damage 
 
33 In case the dispute is in a matter regarding perishable goods, the period within which the panel has to 
be established is 30 days.  WT/REG404/1  
 
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  as a result (Article 8.20). A claim can be submitted under the ICSID Convention, ICSID Additional 
Facility Rules, UN CITRAL Arbitration Rules  or any other arbitral institution or rules if the claimant 
and respondent agree.  
5.25.   Other provisions of Section B deal with conditions and limitations by consent of each Party 
(Article 8.21 and 8.22 ), selection of arbitrators (article 8.23), conduct of the arb itration 
(Article  8.24), transparency of the arbitral proceedings (Article 8.25), governing law (Article 8.26), 
interpretation of annexes (Article 8.27), expert reports (Article 8.28), consolidation (Article 8.29), 
awards (Article 8.30), and service of documents (Article 8.31). 
5.7  Relationship with other agreements concluded by the Parties  
5.26.   Each Party affirms its rights and obligations under existing international agreements to which 
both Parties are party, including the WTO Agreement (Arti cle 1.2). In the event of any inconsistency 
between the Agreement and another agreement to which both Parties are party, consultations shall 
take place with a view to finding a mutually satisfactory solution.  
5.27.   The Parties , in connection with the signing of  the Agreement on 12 February 2018, exchanged 
a letter terminating the Agreement between Australia and the Republic of Peru on the Promotion 
and Protection of Investment on the date of entry into force of the Agreement.  
5.28.   Table 5.1 shows the Parties' participation in all RTAs, notified and non -notified, other than the 
Agreement.  
Table 5.1 Peru and Australia: Participation in other RTAs (notified and non -notified in 
force), as of 7 December 2020  
RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provisions  
PERU  
Comprehensive and Progressive 
Agreement for Trans -Pacific 
Partnership (CPTPP)  Not yet in 
forceb Goods & 
Services  2018 GATT Art. XXIV & GATS Art. V  
Peru - Honduras  01-Jan-17 Goods & 
Services  2018 GATT Art. XXIV & GATS Art. V  
EU - Colombia and Peru - 
Accession of Ecuador  01-Jan-17 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
Pacific Alliance  01-May-16 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Costa Rica - Peru 01-Jun-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
EU - Colombia and Peru  01-Mar-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
Panama - Peru 01-May-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Japan - Peru 01-Mar-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Peru - Mexico  01-Feb-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V; 
Enabling Clause - Changes to 
LAIA TM 80  
Peru - Republic of Korea  01-Aug-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
EFTA - Peru 01-Jul-11 Goods  2011 GATT Art. XXIV  
Peru - China  01-Mar-10 Goods & 
Services  2010 GATT Art. XXIV & GATS Art. V  
Peru - Singapore  01-Aug-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Canada - Peru 01-Aug-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Peru - Chile 01-Mar-09 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V; 
Enabling Clause - Changes to 
LAIA TM 80  
United States - Peru 01-Feb-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
LAIA - Accession of Cuba  26-Aug-99 Goods  1999 Enabling Clause  WT/REG404/1  
 
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  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provisions  
Global System of Trade 
Preferences among Developing 
Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
Andean Community (CAN)  25-May-88 Goods  1990 Enabling Clause  
Latin American Integration 
Association (LAIA)  18-Mar-81 Goods  1982 Enabling Clause  
Protocol on Trade Negotiations 
(PTN)  11-Feb-73 Goods  1971 Enabling Clause  
MERCOSUR - Peru  
[LAIA, AAP.CE 58]  02-Jan-06 Goods  2020 Enabling Clause - Changes to 
LAIA TM 80  
Peru - Cuba  
[LAIA, AAP.CE 50]  09-Mar-01 Goods  2020 Enabling Clause - Changes to 
LAIA TM 80  
LAIA – Seeds  
[LAIA, AAP.AG 2]  18-Jun-93 Goods  2020 Enabling Clause - Changes to 
LAIA TM 80  
LAIA – Agreement on Regional 
Tariff Preference  
[LAIA, AAR.PAR 4]  01-Jul-84 Goods  2020 Enabling Clause - Changes to 
LAIA TM 80  
LAIA - Accession of Panama  03-May-12 Goods  Not notified  
Peru - Thailand  31-Dec-11 Goods  Not notified  
Andean Community  14-Dec-06 Services  Not notified  
AUSTRALIA  
Hong Kong, China - Australia  17-Jan-20 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
Comprehensive and Progressive 
Agreement for Trans -Pacific 
Partnership (CPTPP)  30-Dec-18 Goods & 
Services  2018 GATT Art. XXIV & GATS Art. V  
Australia - China  20-Dec-15 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Japan - Australia  15-Jan-15 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Australia  12-Dec-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
Malaysia - Australia  01-Jan-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
ASEAN - Australia - New Zealand  01-Jan-10 Goods & 
Services  2010 GATT Art. XXIV & GATS Art. V  
Australia - Chile 06-Mar-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Thailand - Australia  01-Jan-05 Goods & 
Services  2004 GATT Art. XXIV & GATS Art. V  
United States - Australia  01-Jan-05 Goods & 
Services  2004 GATT Art. XXIV & GATS Art. V  
Singapore - Australia  28-Jul-03 Goods & 
Services  2003 GATT Art. XXIV & GATS Art. V  
Australia - New Zealand Closer 
Economic Relations Trade 
Agreement (ANZCERTA)  01-Jan-83 
01-Jan-89 Goods  
Services  1983 
1995 GATT Art. XXIV  
GATS Art. V  
South Pacific Regional Trade and 
Economic Cooperation Agreement 
(SPARTECA)  01-Jan-81 Goods  1981 Enabling Clause  
Australia - Papua New Guinea 
(PATCRA)  01-Feb-77 Goods  1976 GATT Art. XXIV  
Indonesia - Australia  05-Jul-20 Goods & 
Services  Not notified  
a Dates of the entry into force for at least one of the Parties . 
b  The CPTPP entered into force for Australia, Canada, Japan, Mexico, New Zealand, Singapore on 
30 December 2018 and for Viet Nam on 14 January 2019. Entry into force for Peru is pending . 
Note:  LAIA TM80: LAIA 1980 Treaty of Montevideo. For those agreements negotiated under the LAIA 
framework, the LAIA reference is included in brackets. Details of these agreements can be found at: 
http://aladi.org   
Source:  WTO Secretariat. Further information on these agreements and on specific dates of entry into 
force/provisional applications may be found in the WTO Database on RTAs: http://rtais.wt o.org 
 WT/REG404/1  
 
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  5.8  Government procurement  
5.29.   Chapter 14 disciplines Government procurement.  While it applies to covered procurement34, 
it does not apply to non -contractual agreements or any form of assistance that a Party provides 
including grants, loans, equity infusion s, fiscal incentives, subsidies, guarantees, cooperative 
agreements and sponsorship arrangements ; procurement related to international assistance and 
development aid ; public employment contracts ; procurement by international organisations ; the 
acquisition or rental of land, existing buildings, or other immovable property ; procurement 
conducted under an international agreement relating to the stationing of troops, or procurement or 
acquisition of f iscal agency or depository services, liquidation and management services for 
regulated financial institutions, or services related to the sale redemption and distribution of public 
debt and procurement of goods and services outside the territory of the Par ty of the procuring entity.  
5.30.   Each Party specifies in its Schedule in Annex 14 -A to the Agreement, its commitments with 
respect to covered procurement by: central Government entities (Section A of Annex 14 -A), sub -
central Government entities (Section B), and  other entities (Section C). The coverage of goods , 
services and construction services  is specified in the notes to Sections A, B and C and in Sections D , 
E and F  of the Annex.  
5.31.   Australia has been a party to both the 1994 WTO Government Procurement Agreement (GPA) 
and to the Revised GPA since 5 May 2019. Peru is neither a party nor an observer to the 1994 WTO 
GPA or the Revised GPA. Australia's  commitments under the Agreement essentially replicate those 
under the GPA.  
5.32.   Chapter 1 4 also provides  for, in Articles 14.2 through 14.17, disciplines on compliance with 
the commitments made by each Party, the valuation of procurement, exceptions, the applicable 
general principles  (such as non -discrimination, procurement methods, r ules of origin, offsets, 
measures not specific to procurement and the use of electronic means),  publication of procurement 
information , notices of intended procurements , conditions for participation , qualification of suppliers, 
limited tendering , technical  specifications , tender ing documentation , time period s, treatment of 
tenders and awarding of contracts , post-award information , disclosure of information , ensuring 
integrity in procurement practice s and domestic review.  
5.33.   A Party may modify its coverage under Chapter 14, under the conditions set in Article 14.18. 
Compensation may have to be provided in certain cases.  
5.34.   The Parties recognize the importance of facilitating the participation of  small and medium -
size enterprises  in Government procurement (Article 14.19). The Parties also endeavour to cooperate 
in matters such as the facilitation of participation by suppliers in Government procurement, in 
particular, with respect to  small and medium -size enterprises , the exchange o f experiences and 
information such as regulatory frameworks, best practices and statistics and the development and 
expansion of the use of electronic means in Government procurement systems (Article 14.20). 
Contact points on Government procurement shall be  designated and notified (Article 14.21).35 The 
contact points shall facilitate the Parties' efforts to address matters related to Chapter 14 such as 
cooperation, participation of small and medium -size enterprises in covered procurement and the 
considerati on of further negotiations.  
5.9  Intellectual property rights  
5.35.   Chapter 17 covers protection of intellectual property rights (IPRs).  
5.36.   Section A of Chapter 17 contains general provisions. It reaffirms objectives and principles 
related to the protection and enforce ment of intellectual property rights in the WTO TRIPS 
Agreement. It also affirms the Parties' commitments to the WTO Declaration on TRIPS and Public 
Health, including through interpret ing and implementing the Chapter in a manner supportive of each 
Party's right to protect public health and to promote access to medicines for all. Moreover, 
 
34 Under the Agreement, the term "covered procurement" c orresponds to the broad definition under the 
Revised GPA.  
35 Peru informed that the contact points had been established. Contact points' details are not for public 
release.  WT/REG404/1  
 
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  Chapter  17 does not and should not prevent the effective utilisation of the "TRIPS/health solution"36, 
according to the Parties' understanding regarding certain public hea lth measures (Article 17.6).  
5.37.   The Parties affirm that they have ratified or acceded to the Patent Cooperation Treaty, the 
Paris Convention for the Protection of Industrial Property, the Berne Convention for the Protection 
of Literary and Artistic Works, the  Budapest Treaty on the International Recognition of the Deposit 
of Microorganisms for the Purposes of Patent Procedure, the International Convention for the 
Protection of New Varieties of Plants, the WIPO Copyright Treaty, the WIPO Performances and 
Phonog rams Treaty and the Marrakesh Treaty to Facilitate Access to Published Works for Persons 
Who Are Blind, Visually Impaired, or Otherwise Print Disabled (Article 17.7).  
5.38.   The Parties reaffirm their commitments to accord each other national treatment with respe ct 
to IPRs, with some exceptions for some forms of secondary uses of phonograms or some judicial 
and administrative procedures (Article 17.8).  
5.39.   Chapter 17 gives rise to obligations on all subject matter existing at the date of entry into 
force of the Agree ment for a Party and that is protected in the territory of a Party where protection 
is claimed, or that meets or comes subsequently to meet the criteria for protection under the Chapter 
(Article 17.10). Chapter 17 does not give rise to obligations for acts  that occurred before the date 
of entry into force of the Agreement for a Party.  
5.40.   Chapter 17 does not affect the freedom of the Parties to determine whether and under what 
conditions the exhaustion of IPRs applies in their respective legal systems (Article 17.11).  
5.41.   Transparency provisions are contained in Article 17.9.  
5.42.   In Section B of Chapter 1 7 the Parties agree to cooperate on matters covered by the Chapter  
(Article 17. 13). Cooperation with a view to improving the quality and efficiency of the Parties' 
respective patent registration systems as well as simplifying and streamlining the procedures and 
processes of their respective patent offices for the benefit of all users of the patent system and the 
public as a whole is encouraged (Article 1 7.14). The Part ies agree to cooperate in the area of genetic  
resources and traditional knowledge associated with genetic resources (Article 1 7.16) and are invited 
to designate contact points for cooperation and capacity building (Article 1 7.12). 
5.43.   Sections C, D, E, F, and G of Chapter 1 7 contain standards and disciplines, building on those 
in the TRIPS Agreement, covering genetic resources and traditional knowledge, trademarks, 
geographical indications (GIs), patents, and copyright and related rights.  
5.44.   With respect to genet ic resources and traditional knowledge (Section C), the Parties recognise 
the relevance of intellectual property systems and traditional knowledge associated with genetic 
resources to each other. The Parties further affirm their continuing commitment to wo rking towards 
a multilateral outcome on intellectual property including patent -related aspects of traditional 
knowledge associated with genetic resources through the WIPO Intergovernmental Committee on 
Intellectual Property and Genetic Resources, Tradition al Knowledge and Folklore (IGC). Subject to 
each Party 's international obligations, each Party may establish appropriate measures to protect 
genetic resources, traditional knowledge and traditional cultural expressions.  
5.45.   With respect to trademarks (Section D), building on TRIPS disciplines, the Agreement contains 
provisions on types of signs registrable as trademarks , collective and certification marks , use of 
identical or similar signs , exceptions to the rights conferred by a trademark , and well-known 
trade marks (Articles 1 7.19 through 1 7.23). 
5.46.   With respect to GIs (Section E), the Parties recognise that geographical indications may be 
protected through a trademark or sui generis  system or other legal means (Article 17.24). The Article 
also sets out transparen cy requirements for a Party that is considering protecting or recognizing a 
 
36 The "TRIPS/health solution" refers to the Decision of the WTO General Council of 3 0 August 2003 on 
the Implementation of Paragraph Six of the Doha Declaration on the TRIPS Agreement and Public Health 
(WT/L/540) and the WTO General Council Chairman's Statement Accompanying the Decision (JOB(03)/177, 
WT/GC/M/82), as well as the Decision o f the WTO General Council of 6 December 2005 on the Amendment of 
the TRIPS Agreement, (WT/L/641) and the WTO General Council Chairperson's Statement Accompanying the 
Decision (JOB(05)/319 and Corr.1, WT/GC/M/100).  WT/REG404/1  
 
- 41 - 
 
  GI. The Parties agree to exchange information concerning procedural requirements for the protection 
or recognition of geographical indications  with respect to any proposed protecti on or recognition of 
Pisco and Pisco Peru . In particular, the Parties shall review Article 17.24  two years after the date of 
entry into force of the Agreement, or earlier if the Parties agree. Such review shall consider the 
Parties ' interests and sensitivi ties in seeking the protection or recognition of certain terms including  
Pisco and Pisco Peru . Australia confirms that the Australia New Zealand Food Standards Code allows 
recognition of Pisco Peru  as a product exclusively produced in Peru and that no vari ation of the Code 
is necessary for such recognition (Article 2.13). Australia shall not permit the sale of any product as 
Pisco Peru  unless such product has been produced in Peru according to the laws and regulations of 
Peru governing the production of Pisco Peru  and complies with all applicable Peruvian laws and 
regulations for the consumption, sale or export as Pisco Peru . 
5.47.   With respect to patents (Section F), the Agreement contains provisions on patentable subject 
matter, exceptions to the exclusive right s conferred by a patent and other use without authorisation 
of the right holder (Articles 17.25 through 17.27).  
5.48.   With respect to copyright and related rights (Section G), the Agreement contains provisions 
on right of reproduction, right of communication to the public, right of distribution, related rights 
(performers and producers of phonograms), application of Article 18 of the Berne Convention and 
Article 14.6 of the TRIPS Agreement, limitations and exceptions to exclusive rights to certai n special 
cases, balance in copyright and related rights system and collective management societies for 
copyright and related rights (Articles 17.29 through 17.36).  
5.49.   Section H of Chapter 1 7 covers enforcement of IPRs and, beyond general obligations 
(Article  17.37), it contains specific disciplines with respect to presumptions , enforcement practices 
with respect to IPRs , civil and administrative procedures and remedies , provisional measures , special 
requirements related to border measures  and criminal procedu res and penalties (Articles 1 7.38 
through 1 7.43).  
5.10  Competition  
5.50.   Chapter 15 addresses competition. It requires that Parties maintain competition laws to 
proscribe anti -competitive conduct, with the objective of promoting economic efficiency and 
consumer welfare. It also requires that each Party maintains a competition authority responsible for 
the enforcement of its competition law (Article 15. 1). 
5.51.   The principle of procedural fairness in competition law enforcement is embedded in 
Article  15.2, while, under Article 15. 3, recognising that a private right of action is an important 
supplement to the public enforcement of competition law, each Party agrees that it should adopt or 
maintain laws that provide an independent private right of action.37 
5.52.   Coope ration is encouraged in the area of competition policy, as well as on issues of 
competition law enforcement, notification, consultations, exchange of information and coordination 
on cross -border enforcement matters (Article 15.4). The Parties shall also co nsider undertaking 
technical cooperation activities such as providing advice or training, exchanging information and 
assistance in the implementation of a national competition law (Article 15.5). Moreover, while each 
Party shall adopt or maintain laws or r egulations on consumer protection, the promotion of 
cooperation and coordination on matters of mutual interest related to unfair trade practices is among 
the disciplines contained in Article 15.6.  
5.53.   Article 15.7 deals with transparency. Consultations on comp etition -related matters are 
foreseen in order to foster mutual understanding between the Parties, or to address any specific 
matter under the Chapter (Article 15. 8).  
5.54.   No Party may have recourse to dispute settlement under Chapter 27 for any competition -
related matter arising under Chapter 15.  
 
37 For the purposes of the Agreement, priva te right of action means the right of a person to seek 
redress, including injunctive, monetary or other remedies, from a court or other independent tribunal for injury 
to that person's business or property caused by a violation of a Party's competition law , either independently or 
following a finding of violation by the competition authority of that Party.  WT/REG404/1  
 
- 42 - 
 
  5.11  State -owned enterprises  
5.55.   Chapter 16 addresses State -owned enterprises (SOEs) and designated monopolies .38 In the 
Preamble of the Agreement, the Parties affirm that SOEs can play a legitimate role in the ir diverse 
economies, but they recognize that the provision of unfair advantages to SOEs undermines fair and 
open trade and investment. They also state their resolve to establish rules for SOEs that promote a 
level playing field with privately owned business es, transparency and sound business practise.  
5.56.   Chapter 16 applies to the activities of SOEs and designated monopolies that affect trade or 
investment between the Parties within the free trade area as well as those whose activities cause 
adverse effects in t he market of a third party (Article 16.2). The Agreement does not prevent a Party 
from establishing or maintaining a State enterprise, SOE or designating a monopoly.  
5.57.   SOEs, State enterprises and designated monopolies must act in a manner that is not 
inconsi stent with the Parties' obligations under the Agreement when the authority to exercise 
regulatory, administrative or other Governmental authority is delegated to them (Article 16.3).39 
5.58.   SOEs and designated monopolies, when engaging in commercial activities,  shall act in 
accordance with commercial considerations in the purchase or sale of a good or service and grant 
non-discriminatory treatment to goods, services, investment or investors of  the other Party or of 
any non -Party (Article  16.4) . Moreover, designa ted monopolies shall not use their monopoly position 
to engage in anticompetitive practices in a non -monopolised market in its territory that negatively 
affect trade or investment between the Parties, either directly or indirectly.  
5.59.   Article 16.6 governs the  use of non -commercial assistance. No Party (or its State enterprise 
or SOE) shall cause adverse effects to the interest of the other Party through the use of 
non-commercial assistance that it may provide to an SOE for certain types of activity. Moreover, no 
Party shall cause injury to a domestic industry of the other Party through the use of non -commercial 
assistance that it provides to any of its SOEs that is a covered investment in the territory of the 
other Party in certain circumstances. The notion of adverse effects  and injury are defined and 
clarified in Article s 16.7 and 16.8.  
5.60.   Article 16.2 includes a number of carve -outs from the obligations in Chapter 16. For example 
some activities performed by central banks or monetary authorities, financial regul atory bodies, or 
selected activities of State enterprises or SOEs (such as activities undertaken for the resolution of a 
failing or failed financial institution or enterprise principally engaged in the supply of financial 
services) are not covered by the A greement. Chapter 16 does not apply to a sovereign wealth fund 
or independent pension fund of a Party , or an enterprise owned or controlled by such a pension fund , 
with some exceptions with respect to the provision of non -commercial assistance. Chapter 1 6 is not 
applicable to Government procurement and does not prevent a Party's SOE from providing goods or 
services exclusively to that Party for the purposes of carrying out the Party's Governmental 
functions. Moreover, most disciplines under Chapter 1 6 do no t apply to any service supplie d in the 
exercise of Governmental authority. Existing or future non -conforming measures, as set out in the 
Parties' Schedule to Annex  I, Annex II  or in Section B of their Schedule to Annex III, are also 
applicable to the purch ases and sales of goods or services by SOEs or designated monopolies. In 
addition, the provisions on non -discriminatory treatment and commercial considerations, and on 
non-commercial assistance shall not apply to the non -conforming activities of SOEs or de signated 
monopolies listed in each Party's Schedule to Annex IV in accordance with the terms of the Schedule 
(Article 1 6.9). 
 
38 For the purposes of the Agreement state -owned enterprises are enterprises that are principally 
engaged in commercial activities in which a Party: i) di rectly owns more than 50% of the share capital, ii) 
controls, through ownership interests, the exercise of more than 50% of the voting rights, or iii) holds the 
power to appoint a majority of members of the boards of directors or any other equivalent manag ement body. 
Monopoly means an entity, including a consortium or Government agency, that in any relevant market in the 
territory of a Party is designated as the sole provider or purchaser of a good or service, but does not include an 
entity that has been gr anted an exclusive intellectual property right solely by reason of the grant. Designated 
monopoly means a privately -owned monopoly that is designated after the date of entry into force of the 
Agreement and any Government monopoly that a Party designates or  has designated.  
39 Examples of regulatory, administrative or other Governmental authority include the power to 
expropriate, grant licences, approve commercial transactions, or impose quotas, fees or other charges.  WT/REG404/1  
 
- 43 - 
 
  5.61.   Further exceptions are contained in Article 1 6.13. Measures to respond temporarily to a 
national or global economic emergency are p ermitted. The supply of financial services by a n SOE 
pursuant to a Government mandate if the service supports certain exports or imports, or private 
investment outside the territory of the Party, under certain conditions, is also carved -out from the 
non-discrimination and commercial considerations provisions. The Agreement foresees that SOEs or 
designated monopolies with an annual revenue derived from their commercial activities below a 
defined threshold shall not be bound by most disciplines in Chapter 1 6.40 
5.62.   In Annex 1 6-D, the Parties list their sub -central SOEs or designated monopolies for which 
most provisions of Chapter 1 6 are not applicable. The Parties nevertheless agree that, within five 
years of the date of entry into force of the Agreement, they shall conduct further negotiations on 
extending the application of the disciplines in Chapter 1 6 to the activities of sub -central SOEs, and 
sub-central designated monopolies listed in Annex 1 6-D (Article 16.14 and Annex 16 -C).  
5.63.   Article 16.5 states  that, in certain circumstances, each Party's courts have jurisdiction over 
civil claims against an enterprise owned or controlled thr ough ownership interests by a foreign 
Government based on a commercial activity carried out in its territory.  
5.64.   Transparency disciplines in Article 1 6.10 include , for example, the provision, including through 
official websites, of a list of SOEs, the prompt notification of the designation of a monopoly or the 
expansion of the scope of an existing monopoly . Technical cooperation between the Parties is 
covered under Article  16.11.  
5.65.   In any dispute arising  under the Agreement, a specific process for developing in formation 
concerning SOEs and designated monopolies, in Annex 1 6-B, is applicable (Article  16.15). 
5.12  Environment  
5.66.   Chapter 19 contains provisions on environment. The objectives are to promote mutually 
supportive trade and environmental policies, promote high levels of environmental protection and 
effective enforcement of environmental laws and enhance the capacities of the Parties to address 
trade -related environme ntal issues, including through cooperation (Article 19.2).  
5.67.   While the Parties recognise the ir sovereign right to establish their own levels of domestic 
environmental protection and priorities, they also recognise that it is inappropriate to encourage 
trade  or investment by weakening or reducing the protection afforded in their respective 
environmental laws and to establish or use their environmental laws or other measures in a manner 
which would constitute a disguised restriction on trade or investment betw een the Parties 
(Article  19.3).  
5.68.   The Parties affirm their commitment to implement the multilateral environmental agreements 
to which they are a party (Article 19.4). Moreover, recognis ing their importance , the Parties shall 
promote and encourage the conser vation and sustainable use of biological diversity  and their key 
role in achieving sustainable development  in accordance with its law or policy and international 
agreements to which they are party.  The Parties further recognise that they require, through a nd in 
accordance with national measures , prior informed consent to access such genetic resources and, 
where such access is granted, the establishment of mutually agreed terms, including with respect 
to sharing of benefits from the use of such genetic resou rces, between users and providers and also 
acknowledge that access to traditional knowledge associated with genetic resources from providers, 
as well as the equitable sharing of benefits that may result from the utilisation of that traditional 
knowledge, m ay be addressed through contracts that reflect mutually agreed terms between users 
and providers. The Parties shall cooperate to address matters of mutual interest related to trade and 
biodiversity in accordance with relevant international obligations and with their laws and policies.  
5.69.   The Parties also acknowledge that climate change requires collective action and they 
recognise the importance of implementation of their respective commitments under the multilateral 
agreements to which they are party. Recognizing  that each Party 's actions should reflect domestic 
circumstances and capabilities, the Parties shall, as approp riate, cooperate to address matters of 
 
40 The calculation of the applicable thresh old is defined in paragraph 5 of Article 16.13 and further 
detailed in Annex 16 -A. WT/REG404/1  
 
- 44 - 
 
  joint or common interest.  The Parties also affirm the importance of combating the illegal trade in 
wild fauna and flora. Accordingly, each Party shall adopt, maintain and implement laws, regulations 
and any other meas ures to fulfil its obligations under the multilateral environmental agreements to 
which they are party.  
5.70.   The Parties shall designate contact points to facilitate communications between the them on 
environmental matters (Article 19.5).41 A Party may request consultations, in writing, regarding any 
matter arising under the Chapter and they shall make every attempt to arrive at a mutually 
satisfactory resolution of the matter.  
5.71.   Neither Party shall have recourse to dispute settlement under Chapter 27 for any matt er 
arising under Chapter 19.  
5.13  Labour  
5.72.   Chapter 18 contains provisions on labour. The Parties affirm their obligations as members of 
the International Labour Organization (ILO)  and endeavour to adopt and maintain in their labour 
laws and practices the principl es stated in the ILO Declaration (Articles 1 8.2 and 1 8.3).  
5.73.   Neither Party shall fail to effectively enforce, waive or otherwise derogate from, or offer to 
derogate from its labour laws through a sustained or recurring course of action or inaction in a 
mann er affecting trade or investment between the Parties ( Article 1 8.4).  
5.74.   The Agreement also contains provisions on procedural guarantees and public awareness  and 
labour cooperation (Articles 1 8.5 and 18.7). 
5.75.   The Parties shall designate contact points to facili tate communications between the them on 
labour matters (Article 18.6).42 
5.14  Electronic commerce  
5.76.   Chapter 13 contains disciplines applicable to electronic commerce.  Article 13.3 specifies that 
neither Party shall impose customs duties on electronic transmission s, including content transmitted 
electronically, between a person of a Party and a person of the other.  
5.77.   Neither Party shall accord less favourable treatment to digital products created, produced, 
published, contracted for, commissioned or first made avail able on commercial terms in the territory 
of the other Party, or to digital products of which the author, performer, producer, developer or 
owner is a person of the other Party, than it accords to other like digital products (Article 13.4). This 
does not a pply to the extent of any inconsistency with the rights and obligations in Chapter 17 on 
intellectual property. Article 13.4 does not apply to subsidies or grants, including Government -
supported loans, guarantees and insurance, and to broadcasting.  
5.78.   Each Party shall maintain a legal framework consistent with the principles of the UNCITRAL 
Model Law on Electronic Commerce or the United Nations Convention on the Use of Electronic 
Communications in International Contracts.  
5.79.   Chapter 1 3 also contains disciplines on electronic authentication and electronic signatures , 
online consumer protection , personal information protection , paperless trading , principles on access 
to and use of the internet for electronic commerce, cross -border transfer of i nformation by electronic 
means, location of computing facilities, unsolicited commercial electronic messages , cooperation, 
cooperation on cybersecurity and source code (Article s 13.6 to  13.16) . 
 
41 The Parties informed that the contact points had been established. Contact points' details are not for 
public release.  
42 The Parties informed that the contact points had b een established. Contact points' details are not for 
public release.  WT/REG404/1  
 
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  5.15  Small and medium -sized enterprises  
5.80.   Chapter 23 contains provisi ons on small and medium -size enterprises  (SMEs) .  
5.81.   The Parties acknowledge the importance of promoting an environment that facilitates and 
supports the development, growth and competitiveness of SMEs, recognizing  their participation in 
domestic markets as w ell as in international trade, and their contribution in achieving inclusive 
economic growth, sustainable development and enhanced productivity (Article 23.1).  
5.82.   Each Party shall establish or maintain its own publicly accessible website containing 
informati on including the text and a summary of the Agreement and a description of the provisions 
of the Agreement considered to be relevant to SMEs (Article 23.2). The Parties shall designate and 
notify contact points on SMEs to facilitate communications between t he them (Article 23.3).  
5.83.   Section 5.8   of this Factual Presentation provides details on SMEs and Government 
procurement.  
5.84.   Neither Party shall have recourse to dispute settlement under Chapter 27 for any matter 
arising under Chapter 23. 
5.16  Other  
5.16.1   Cooperation and capacity building  
5.85.   Chapter 20 covers cooperation and capacity building in areas of common interest such as , 
inter alia , agricultur e, industrial and services sectors, education, culture and gender equality, 
innovation, technology an d research and disaster risk management (Article 20.2).  
5.86.   Each Party shall designate and notify a contact point on matters relating to the coordination 
of cooperation and capacity building activities (Article 20.3). The Agreement also establishes a 
Committe e on Cooperation and Capacity Building to, inter alia , discuss and consider issues or 
proposals for future cooperation and capacity building activities, facilitate public -private 
partnerships, review the implementation of the Chapter and engage in other activities as the Parties 
may decide (Article 20.4). Th e implementation of the Chapter is subject to the availability of funds 
and resources and applicable laws and regulations of each Party and the costs of cooperation and 
capacity building activity shall be borne in equitable manner by the Parties (Article 2 0.5). 
5.87.   The provisions under Chapter 20 shall not be subject to dispute settlement under Chapter 27 
(Article 20.6).  
5.16.2   Competitive ness and business facilitation  
5.88.   Under Chapter 2 1 on competitiveness and business facilitation , the Parties recognise that, in 
order to enhance the domestic, regional and global competitiveness of their economies, and to 
promote economic integration and development within the free trade area, their business 
environments must be responsive to market developments (Article 21.2). The Parti es shall designate 
and notify contact points to facilitate communications between them in competitiveness and business 
facilitation matters.  
5.89.   The provisions under Chapter 2 1 shall not be subject to dispute settlement under Chapter 2 7 
(Article 21.3) . 
5.16.3   Develo pment  
5.90.   Chapter 2 2 addresses development. Besides general provisions  (Article 22.1) , it encourages 
the Parties to implement development policies that maximise the use of the opportunities created 
by the Agreement  (Article 22.2) . It also contains encouragemen ts and guidelines for Parties to take 
measures, including cooperative activities, aiming at enhancing broad -based economic growth  
(Article 22.3) , as well as the ability of women to fully access and benefit from the opportunities 
created by the Agreement  (Article 22.4)  and promoting the development of education, science and WT/REG404/1  
 
- 46 - 
 
  technology, research and innovation  (Article 22.5) . It also lists possible joint development activities  
(Article 22.6) . 
5.91.   The Parties shall designate and notify contact points to facilitate  communications between 
them on any matter related to development covered by Chapter 22 (Article 22.7).  
5.92.   In the event of any inconsistency between Chapter 2 2 and other Chapter s of the Agreement, 
the other Chapters shall prevail to the extent of the inconsis tency  (Article 22.8) . 
5.93.   The provisions under Chapter 2 2 shall not be subject to dispute settlement under Chapter 2 7 
(Article 22.9) . 
5.16.4   Regulatory coherence  
5.94.   Chapter 24 on regulatory coherence mandates each Party to determine, no later than two 
years after the da te of entry into force of the Agreement and make publicly available the scope of 
its covered regulatory measures (Article 24.3).  
5.95.   The term "regulatory coherence" refers to the use of good regulatory practices in the process 
of planning, designing, issuing,  implementing and reviewing regulatory measures in order to 
facilitate achievement of domestic policy objectives, and in efforts across Governments to enhance 
regulatory cooperation in order to further those objectives and promote international trade and 
investment, economic growth and employment (Article 24.2).  
5.96.   The Chapter invites Parties to develop processes or mechanisms to facilitate effective 
interagency coordination and the review of proposed covered regulatory measures (Article 24.4). 
Each Party should also encourage the relevant regulatory agencies to cond uct regulatory impact 
assessments when developing proposed covered regulatory measures that exceed a threshold of 
economic impact, or other regulatory impact, where appropriate, as established by the Party 
(Article  24.5).  
5.97.   The Parties shall designate and n otify contact points to facilitate communications between the 
them on any matter related to regulatory coherence (Article 24.6) . The Parties also endeavour to 
cooperate in order to facilitate the implementation of the Chapter and to maximise the benefits 
arising from it through, among others, the exchange of information and training programmes 
(Article  24.7).  
5.98.   In the event of any inconsistency between Chapter 24 and other Chapters of the Agreement, 
the other Chapters shall prevail to the extent of the incons istency (Article 24.8).  
5.99.   The provisions under Chapter 24 shall not be subject to dispute settlement under Chapter 27 
(Article 24.9).  
5.16.5   Anti-corruption  
5.100.   The provisions on anti -corruption in Section C of Chapter 2 5 address measures to eliminate 
bribery and corruption on any matter covered by the Agreement  (Article 25.6) . 
5.101.   The Agreement addresses measures to combat corruption (Article 2 5.7), the Parties' 
commitments to promote integrity among public officials (Article  25.8) and applying and enforcing 
anti-corruption laws (Article 2 5.7). Each Party also agree s to take appropriate measures to promote 
the active participation of individuals and groups outside the public sector, such as enterprises, civil 
society, non -governmental organisations and community -based organisations, in the prevention of 
and the fight against corruption in matters affecting international trade or investment  (Article 25.10) . 
The Parties also commit to raise public awareness regarding the exis tence, causes and gravity of, 
and the threat pose d by, corruption.  
5.102.   With respect to the relationship between Section C of Chapter 25 to other agreements, Article 
25.11 clarifies, that nothing in the Agreement shall affect the Parties' rights and obligations und er 
the United Nations Convention against Corruption, the United Nations Convention against WT/REG404/1  
 
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  Transnational Organized Crime, the Convention on Combating Bribery of Foreign Public Officials in 
International Business Transactions or the Inter -American Conventio n Against Corruption.  WT/REG404/1  
 
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  ANNEX 1  
1. Table A1. 1 and Table A1. 2 present the Parties' tariff elimination schedule by HS Chapters 1 -
24 (agricultural product s), 25 -97 (industrial products) and all products . The average applied MFN 
tariff at the date of entry into force of the Agreement serves as comparison.  
2. Australia's  overall average applied MFN tariff rate in 2020 was 2.6% ( Table A1. 1). The average 
applied tariff in HS Chapters 1 -24 was 1.1%, compared to an average applied tariff of 2.9% in 
HS Chapters 25 -97. Duty -free tariff lines accounted for 47.8% of all tariff lines. U pon entry into force 
of the Agreement, the share of duty -free tariff lines in agricultural products rose from 78.4% to 
99.8%, while the share of duty -free tariff lines in industrial products rose from 41.9% to 95.3%. 
The preferential tariff fell to 0.1% ov erall and zero and 0.2% respectively for agricultural and 
industrial products. As a result, Peru's exporters faced a relative margin of preference of 96% overall 
and 100% and 93% for agricultural and industrial products respectively. At the end of the transition 
period in 2023, Peru's exporters will face zero duties on 99.8% of Australia's tariff lines (100% for 
agricultural products and 99.8% for industrial products).  
Table A1. 1 Australia: Indicators of MF N tariff rates and preferential rates for imports 
from Peru  
Origin 
of 
goods  Year ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2020 2.6 5.0 47.8 1.1 5.0 78.4 2.9 5.0 41.9 Peru 2020 0.1 3.4 96.0 0.0 3.7 99.8 0.2 3.4 95.3 
2021 0.1 1.9 96.0 0.0 2.5 99.8 0.1 1.9 95.3 
2022 0.0 1.2 98.9 0.0 1.2 99.8 0.0 1.2 98.8 
2023  0.0 0.0 99.8 0.0 0.0 100.0  0.0 0.0 99.8 
Note:  For the calculation of averages, specific rates are excluded, and the ad valorem  parts of alternate 
rates are included . 
 Based on the HS 2017 nomenclature . 
Source:  WTO estimates based on data provided by Australia and WTO -IDB. 
 
3. In the case of Peru, the sh are of duty -free tariff lines applied on all products rose from 69.9% 
on an MFN basis to 93.4% upon the Agreement's entry into force and the overall average applied 
tariff fell from 2.2% to 0.4% for imports from Australia . For agricultural goods, Australian exporters 
faced in Peru an average preferential tariff rate of 0.5% instead of 2.4%, and 0. 4% instead of 2.2% 
for industrial goods. As a result, the relative margin of preference for Australian exporters was 82% 
overall and 79% and 82% respectiv ely for agricultural and industrial products. At the end of 
implementation , the share of duty -free tariff lines will rise to 99.4% overall, and 96.3% and 100% 
for agricultural and industrial products  respectively .  
Table A1. 2 Peru: Indicators of MFN tariff rates and preferential rates for imports from 
Australia  
Origin 
of goods  Year ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average 
applied 
tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2020 2.2 7.5 69.9 2.4 6.3 59.8 2.2 7.8 71.8 
Australia  2020 0.4 6.6 93.4 0.5 6.4 88.3 0.4 6.6 94.4 WT/REG404/1  
 
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  Origin 
of goods  Year ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average 
applied 
tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
2021 0.4 6.0 93.4 0.5 5.7 88.3 0.3 6.0 94.4 
2022 0.2 4.0 93.4 0.3 4.0 88.3 0.2 4.0 94.4 
2023 0.1 2.1 93.4 0.2 2.2 88.3 0.1 2.0 94.4 
2024 0.0 5.4 99.3 0.0 5.3 95.8 0.0 6.0 100.0  
2025 0.0 4.6 99.3 0.0 4.5 95.8 0.0 6.0 100.0  
2026 0.0 3.9 99.3 0.0 3.7 95.8 0.0 6.0 100.0  
2027 0.0 3.2 99.3 0.0 2.9 95.8 0.0 6.0 100.0  
2028 0.0 2.5 99.3 0.0 2.1 95.8 0.0 6.0 100.0  
2029  0.0 6.0 99.4 0.0 6.0 96.3 0.0 6.0 100.0  
Note:  Tariff lines subject to in -quota rates are excluded from the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  parts of alternate rates are included . 
 Based on the HS 2017 nomenclature .  
Source:  WTO estimates based on data provided by Peru. 
 
4. Table A1. 3 gives an indication of additional market access into Australia resulting from the 
entry into force of the Agreement for Peru's top 25 global exports, which accounted for 79.4% of its 
global exports in 2017 -2019. In 2020, prior to the entry into force of t he Agreement, 38 of 40 tariff 
lines were already duty free in Australia's on an MFN basis . With the entry into force of the 
Agreement, the two remaining dutiable tariff lines became duty -free.  
Table A1. 3 Australia: Market acces s opportunities under the Agreement for Peru's top 25 
exports to the world  
Peru's top export products  
in 2017 -19 Access Conditions to Australia's markets  
HS number and description of the product  Share  
in global 
exports  
(%) MFN 2020  
Number  of 
duty-free 
lines under 
the 
Agreement 
(2020)  
Remain 
Dutiable  
Average 
Tariff 
(%) 
Number of 
duty-free 
lines  
Number  of 
dutiable 
lines  
260300  Copper ores and concentrates  26.9 0.0 1    
710812  Gold 15.2 0.0 1    
260800  Zinc ores and concentrates  4.2 0.0 1    
740311  Copper  3.8 0.0 1    
271019  Medium oils and preparations  3.5 0.0 12    
230120  Flours, meals and pellets of fish or 
crustaceans, molluscs or other 
aquatic invertebrates  3.3 0.0 1    
271012  Light oils and preparations  2.3 0.0 5    
260700  Lead ores and concentrates  2.2 0.0 1    
271111  Natural gas, liquefied  1.8 0.0 1    
080610  Fresh grapes  1.7 5.0  1 1  
080440  Fresh or dried avocados  1.5 0.0 1    
090111  Coffee  1.5 0.0 1    
260111  Non-agglomerated iron ores and 
concentrates  1.4 0.0 1    
081040  Fresh cranberries, bilberries and 
other fruits of the genus vaccinium  1.2 0.0 1    
261610  Silver ores and concentrates  1.2 0.0 1    
261390  Molybdenum ores and concentrates  1.2 0.0 1    
790111  Unwrought zinc, not alloyed  0.9 0.0 1    
070920  Fresh or chilled asparagus  0.9 0.0 1    
150420  Fats and oils of fish and their 
fractions  0.8 0.0 1    
030743  Cuttle fish and squid, frozen  0.8 0.0 1    WT/REG404/1  
 
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  Peru's top export products  
in 2017 -19 Access Conditions to Australia's markets  
HS number and description of the product  Share  
in global 
exports  
(%) MFN 2020  
Number  of 
duty-free 
lines under 
the 
Agreement 
(2020)  
Remain 
Dutiable  
Average 
Tariff 
(%) 
Number of 
duty-free 
lines  
Number  of 
dutiable 
lines  
800110  Unwrought tin, not alloyed  0.8 0.0 1    
790112  Unwrought zinc, not alloyed  0.7 0.0 1    
610910  T-shirts, singlets and other vests of 
cotton, knitted or crocheted  0.7 5.0  1 1  
710691  Silver  0.5 0.0 1    
080450  Fresh or dried guavas, mangoes 
and mangosteens  0.5 0.0 1    
Total  79.4 0.4 38 2 2 - 
Note:  For the calculation of averages, specific rates are excluded, and the ad valorem  parts of alternate 
rates are included . 
 Based on the HS 2017 nomenclature . 
Source:  WTO estimates based on data provided by Australia, WTO -IDB and UNSD Comtrade Database . 
 
5. Table A1.4 shows market access opportunities for Australia ' top 25 exported goods in Peru. 
These exports accounted for 62.8% of Australia 's exports during 201 7-2019 and involved 77 tariff 
lines in Peru's schedule, of which 54 were already duty -free on an MFN basis. Following  the entry 
into force of the Agreement, Peru liberalized 16 lines in 2020. Further liberalization is scheduled in 
2024 for five lines. At the end of implementation , two lines related to imports of food preparations , 
for which the average applied MFN tariff in 2020 was 1.4%,  will remain dutiable for imports from 
Australia . 
Table A1. 4 Peru: Market access opportunities under the Agreement for Australia's top 25 
exports to the world  
Australia's top export products  
in 2017 -19 Access Conditions to Peru's markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 202 0 Number   
of duty -free 
lines under 
the 
Agreement  
Remain Dutiable  Average 
Tariff (%)  
Number  of 
duty-free 
lines  
Number  of 
dutiable 
lines  
2020  
2024  
260111  Non-agglomerated iron ores and 
concentrates  21.6 0.0 1     
270112  Bituminous coal  18.3 0.0 1     
710813  Gold 5.8 0.0 1     
270900  Petroleum oils and oils obtained from 
bituminous minerals, crude  1.7 0.0 1     
260300  Copper ores and concentrates  1.7 0.0 1     
020230  Frozen, boneless meat of bovine 
animals  1.5 11.0  2  2  
100199  Wheat and meslin  1.3 0.0 2     
510111  Greasy shorn wool  1.0 0.0 1     
020130  Fresh or chilled bovine meat, 
boneless  1.0 11.0  2 1 1  
740311  Copper  1.0 0.0 1     
760110  Aluminium, not alloyed, unwrought  0.9 0.0 1     
260800  Zinc ores and concentrates  0.7 0.0 2     
220421  Wine of fresh grapes  0.7 6.0  1 1   
271019  Medium oils and preparations  0.6 0.0 22     
300490  Medicaments consisting of mixed or 
unmixed products for therapeutic or 
prophylactic purposes  0.6 6.0  7 7   
281820  Aluminium oxide  0.6 0.0 1     WT/REG404/1  
 
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  Australia's top export products  
in 2017 -19 Access Conditions to Peru's markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 202 0 Number   
of duty -free 
lines under 
the 
Agreement  
Remain Dutiable  Average 
Tariff (%)  
Number  of 
duty-free 
lines  
Number  of 
dutiable 
lines  
2020  
2024  
880330  Parts of aeroplanes or helicopters  0.5 0.0 1     
020442  Frozen cuts of sheep  0.5 6.0  1 1   
790111  Unwrought zinc  0.5 0.0 1     
520100  Cotton  0.5 6.0  4 4   
210690  Food preparations  0.4 1.4 10 5 1 2 2 
261690  Precious -metal ores and concentrates  0.4 0.0 2     
100390  Barley  0.4 6.0  1 1   
253090  Arsenic sulfides, alunite, pozzuolana, 
earth colours and other mineral 
substances  0.4 0.0 3     
120510  Low erucic acid rape or colza seeds  0.4 0.0 2     
Total  62.8 2.1 54 23 16 5 2 
Note:  Tariff lines subject to in -quota rates are excluded from the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  parts of alternate rates are included . 
 Based on the HS 2017 nomenclature . 
Source:  WTO estimates bas ed on data provided by Peru and UNSD Comtrade Database . 
 
 WT/REG404/1  
 
- 52 - 
 
  ANNEX 2  
Table A2. 1 Peru: Products subject to the price -band system  
Tariff lines  Category  MFN In 
quota  Out of 
quota  Quotas (metric tons)  
0401100000, 0401200000, 
0402101000, 0402109000, 
0402211100, 0402211900, 
0402219100, 0402219900, 
0402291100, 0402291900, 
0402299100, 0402299900, 
0402991000, 0404109000, 
0405100000, 0405902000, 
0405909000, 0406300000, 
0406904000, 0406905000, 
0406906000, 0406909000, 
1901902000, 1901909000, 
2106907900, 2106 909000  TRQ DR  0% + SPFP  free 0% + SPFP  from 7,000 in year 1 to 
10,000 from year 10 
onwards  
1006109000, 1006200000, 
1006300000, 1006400000  TRQ RC  0% + SPFP  free 0% + SPFP  from 30,000 in year 1 
to 90,000 from year 18 
onwards  
1007900000  TRQ SH  0% + SPFP  free 0% + SPFP  from 9,000 in year 1 to 
14,000 from year 5 
onwards  
1701120000, 1701140000, 
1701999000, 1702600000, 
1702902000, 1702903000, 
1702904000  TRQ SG  0% + SPFP  free 0% + SPFP  from 15,000 in year 1 
to 20,000 from year 5 
onwards  
1005901100, 100590120 0, 
1005901900, 1005909000, 
1103130000, 1702302000, 
2309909000  X 0% + SPFP  - -  
1108120000, 1108130000, 
3505100000  X 6% + SPFP  - -  
 
 WT/REG404/1  
 
- 53 - 
 
  ANNEX 3 
Table A3. 1 Australia and Peru: Conditions and limitations for businesspersons  
Category  Maximum length of stay  
Australia  
Business visitors  3 months (for businesspersons seeking to travel to 
Australia for business purposes)  
12 months (for service sellers)  
Installer and servicers  3 months  
Intra-corporate transfereesa 4 years with the possibility of further stay (for 
executives and senior managers)  
2 years with the possibility of further stay (for 
specialists)  
Independent executivesa 2 years  
Contractual se rvice suppliersab 2 years with the possibility of further stay  
Peru 
Business visitors  183 days  
Intra-corporate transfereesc 1 year renewable upon request  
Investorsc 1 year renewable upon request  
Professionals  1 year  renewable upon request (for independent 
professionals)  
90 days renewable for 1  year (for contractual service 
suppliers)  
Technicians  1 year renewable upon request (for independent 
professionals)  
90 days renewable for 1  year (for contractual service 
suppliers)  
a  Temporary entry is subject to employer sponsorship. Entry of spouses and dependants is for the 
same period as the businesspersons concerned . 
b Temporary entry may be subject to labour market testing requirements . 
c Entry of spouses is subject to Peru's laws and regulations . 
 
__________