Slade Brockman (WA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Trade, Tourism and Investment, Senator Birmingham. Can the minister update the Senate on the Peru-Australia Free Trade Agreement and how it will benefit Australian exporters, manufacturers, farmers and businesses?

Simon Birmingham (SA, Liberal Party, Minister for Trade) Share this | Link to this | Hansard source

I thank Senator Brockman for his question and his advocacy for regional Australians and Australian farming businesses in terms of access under our network of free trade agreements. Overnight the Peru-Australia Free Trade Agreement entered into force. This is a very strongly negotiated positive agreement for Australia, with over 99 per cent of all tariffs on Australian goods to Peru ultimately being eliminated, expanding on the outcomes negotiated as part of the Trans-Pacific Partnership.

Peru has been one of the fastest-growing economies in Latin America, and at times in the world, over the last decade. Whilst Peru is relatively unknown to many Australian exporters in terms of details, it has a growth domestic product comparable to that of Vietnam. It has high rates of GDP growth and a population in excess of 31 million people. Peru provides a similar consumer base to that of Malaysia, a longstanding trade partner of Australia. This FTA places Australia in a strong position to share in Peru's continued economic growth, providing opportunities to expand our engagement into the future.

PAFTA provides new opportunities to Australian farmers, with zero tariffs on beef within five years, giving the same access into Peru that US farmers already have. PAFTA provides our sugar farmers with better access to sell sugar than Peru has provided to any other sugar-exporting country in the last 20 years. Australian dairy farmers have historic new access to Peru, with zero tariffs from day one under PAFTA for 7,000 tonnes initially, increasing to 10,000 tonnes, of product. There is immediate duty-free access for Australian wine, sheep meat, most horticultural products, kangaroo meat and wheat under PAFTA. Manufacturers benefit, as do our services in the education sector—all with improved access outcomes, thanks to the entry into force of PAFTA overnight.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Brockman, a supplementary question?

Slade Brockman (WA, Liberal Party) Share this | Link to this | Hansard source

Thank you, Minister, for that answer. How has industry reacted to the Peru-Australia Free Trade Agreement?

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

It's very excited!

Simon Birmingham (SA, Liberal Party, Minister for Trade) Share this | Link to this | Hansard source

Yes, it is indeed very excited; thanks, Senator Whish-Wilson. The Queensland sugar industry have said they expect Australia to be able to fill 30,000 tonnes of duty-free sugar access to Peru—that's the initial quota that is provided for, and it will grow over time. CANEGROWERS Australia have said that they expect the deal will deliver an extra $13½ million to cane farmers alone. The Red Meat Advisory Council have described PAFTA as an exciting new opportunity in the Latin American meat market and have noted that the forecast is for Peruvian beef consumption to triple by 2020 and for sheep meat consumption to increase by 20 per cent by 2025. The new market access there provides opportunities for Australian producers to seize large parts of that forecast growth. Energy markets, the Australia-Latin America Business Council and others have all welcomed the opportunities this provides for deeper business integration and growth in exports.

Scott Ryan (President) Share this | Link to this | Hansard source

Order, Senator Birmingham! Senator Brockman, a final supplementary question?

Slade Brockman (WA, Liberal Party) Share this | Link to this | Hansard source

Can the minister advise the Senate how the government is supporting Australian exporters and creating more opportunities for them? How does improved trade help build a stronger economy and create more Australian jobs?

Simon Birmingham (SA, Liberal Party, Minister for Trade) Share this | Link to this | Hansard source

We are able to deliver these trade agreements thanks to continued effort, negotiation and outcomes by our government and, I note, bipartisan support for the passage of these agreements through the chamber. It is critically important that we maintain that and recognise the growth and the dividend it is delivering to Australia.

More Australian businesses are exporting today as a result of the trade agreements we have negotiated. More than 53,000 small and medium-sized enterprises are exporting today, a number which in terms of businesses exporting has grown some 18½ per cent in our time in government. More Australians are employed in trade related businesses. Trade and exports are generating more jobs for Australians. Some 240,000 trade related jobs, it has been estimated, have been created over the last five years. Australian household incomes are estimated to be higher—an average of $8½ thousand higher—as a result of trade access around the world. There are more jobs, more businesses and higher incomes thanks to our export markets.