March 11, 2019

Australia's dairy council urges parliament to finalise Peru trade deal


Australia has already completed negotiations for a trade deal with Peru less than two years earlier, but the former's Federal Parliament needs to quickly confirm the deal's coming into force - an action that the Australian Dairy Industry Council is now pushing for, Dairy News Australia reported.

The agreement was twice reviewed by the parliamentary Joint Standing Committee on Treaties. However, its implementation has been hampered by "a couple of issue such as ISDS (Investor State Dispute Settlement),"  ADIC chair Terry Richardson said.

According to Richardson, the Australian dairy sector does not want Australia to be seen as stalling in regards to deciding on the better market access it could enjoy. The agreement, in fact, could benefit Australian dairy in the end, he said.

''[The agreement] provides better dairy market access when compared to the recently signed Comprehensive and Progressive Trans Pacific Partnership (CPTPP) agreement - of which both Australia and Peru are member countries."

Richardson described Peru as a historically "sensitive market" for Australia's dairy exports. The conclusion of the latest agreement would provide the Australian industry "Country Specific Quota access, which actually exceeds the volume of trade in recent years," he added.

''This provides improved certainty for Australian exporters into Peru, and helps keep Australian dairy on a level playing field with competitors such as the EU and the US, who already have their own deals in place with Peru."