A free trade agreement (FTA) is an international treaty between two or more economies that reduces or eliminates certain barriers to trade in goods and services, as well as investment. Australia negotiates FTAs to benefit Australian exporters, importers, producers, and investors by reducing and eliminating certain barriers to international trade and investment.
Australia-Chile FTA
The Australia-Chile Free Trade Agreement entered into force on 6 March 2009. It was Australia’s fifth FTA and the first with a Latin American country.
The FTA covers goods, services, and investment. From 1 January 2015, all tariffs were eliminated except sugar, which retains a tariff of 6 percent for Australian exports due to Chile’s price-band system. Since its entry into force, there has been a significant increase in Australian companies operating in Chile to over 200. Many of these companies have expanded their business beyond Chile and into Latin America more broadly.
Key interests and benefits
- Elimination of almost 92 percent of tariff lines covering 97 percent of merchandise trade upon entry into force.
- Elimination of tariffs on all existing merchandise trade from 1 January 2015.
- National treatment for Australian goods, services, and suppliers in the Chilean market for procurements above agreed value thresholds.
- Locks in both sides’ liberal services and investment regimes.
- Locks in both sides’ high standards of IP protection for patents, trademarks, geographical indications, and copyright. To find out more about Chile, go to: Chile Bilateral, Economic, and Trade.
Peru-Australia FTA (PAFTA)
PAFTA will launch a new chapter in economic relations between Australia and Peru. This trade agreement provides Australian businesses a gateway to Latin America, strengthening our economic relationships within the region and helping facilitate value chains between the Americas and Asia.
PAFTA enables Australian businesses to take advantage of this growing market and strengthens our economic relationships with Latin America.
By removing certain barriers to trade and investment, PAFTA makes doing business between the two countries easier. Under PAFTA, Australian exporters to Peru gain substantial new trade and investment opportunities. For example, Australian beef, sugar, and dairy farmers obtain historic access to the Peruvian market.
PAFTA also provides Australian service providers with a more transparent and predictable operating environment in Peru and a platform for both countries to increase the value of our bilateral services trade. Investment commitments in the agreement protect and enhance investment in both directions.
To learn more about PAFTA outcomes go to PAFTA Outcomes.
Australia-Mexico: Bilateral, economic, and trade information
Australia and Mexico established diplomatic relations in 1966. Australia has an Embassy in Mexico City.
Mexico has an Embassy in Canberra and Honorary Consuls in New South Wales, Queensland, Victoria, and Western Australia.
People-to-people links between Australia and Mexico are also deepening, with high numbers of Australians visiting Mexico and increasing numbers of Mexican students choosing to study in Australia.
Australia is working closely with Mexico on our shared interests in combatting the narcotics trade through the Australian Federal Police office in Mexico.
Foreign relations
Australia and Mexico are members of the G20, APEC, MIKTA, OECD, WTO, UN, and UN organisations.
Mexico has 13 free trade agreements covering 50 countries (and trading networks spanning north, south, east, and west), making it one of the world’s broadest networks of free trade agreements.
Mexico was elected as a non-permanent member of the UN Security Council for 2021-22. Mexico also sits on the UN Human Rights Council and the Economic and Social Council (ECOSOC) and has been re-elected to ECOSOC for the 2021-2024 term.
Key engagement
Substantial investment and commercial ties across education and research, food and agribusiness, infrastructure finance, mining technology and services, and close cooperation in multilateral fora.
Outlook
Mexico is forecast to be among the world’s top 15 economies by 2030. For more about Australia-Mexico Trade Relations go to Australia-Mexico Trade Relations.
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