Negotiations to open new markets, including expanded kangaroo meat trade opportunities to Australian farmers, has been launched by the Coalition Government through a free trade agreement with Peru, Federal Member for Parkes, Mark Coulton said.
Mr Coulton said Peru presents a growing opportunity for exporters in the electorate of Parkes, that the Peru-Australia Free Trade Agreement (PAFTA) will help unlock.
“Over the past decade, Peru has been one of the fastest growing economies in Latin America, and the world, with annual GDP growth averaging 5.9 per cent (2005-2015),” he said.
“Many of our exports to Peru are blocked by high tariffs that this Free Trade Agreement [FTA] will seek to eliminate.
The electorate of Parkes has tremendous agricultural exporting strengths, such as beef, sheep meat and dairy. These products are currently facing tariffs of 17 per cent for beef, nine per cent for sheep meat and wine and up to 29 per cent for dairy products.
The United States, the European Union and Canada all have FTAs that give them preferential access to Peru.
During a recent visit to Broken Hill, Mr Coulton met with the Pastoralists’ Association of West Darling President Lachlan Gall and his constituents at the group’s annual general meeting.
He said a key message from the Association was the impact of unsustainably high populations of kangaroos in the Western Division. The estimate population of roos in NSW in 2016 was 17.5 million. The Western Plains population was estimated to be 12.7 million.
“A working group including the Association and Local Land Services is seeking to increase the number of wholesale licences for commercial harvesting,” he said. “The current limit, capped at 11, has been stifling growth and the resurgence of this important industry.”
“PAFTA will help the electorate of Parkes exporters compete and break into this growing market,” Mr Coulton said.
“Our expertise in key growth sectors such as mining, finance, education, health and tourism, are also well suited to meet this demand.”
An FTA with Peru would be another gateway to Latin America, strengthening Australia’s economic relationship with the region and enabling electorate of Parkes’ business to tap into value chains between the Americas and Asia.
Kangaroo Industry Association of Australia President, Ray Borda said the start of negotiations with Peru represents an exciting opportunity for kangaroo meat exports.
“It’s fantastic, not only are they big meat eaters in Peru but all throughout South America they love the taste of kangaroo,” Mr Borda said.
“If negotiations go well this will be a huge step towards opening up the rest of South America and towards demonstrating how great this product is to the rest of the world.”
“The Coalition Government is in discussions with 10 countries, including Peru, involved in the Trans Pacific Partnership negotiations to assess options for bringing the TPP into force as soon as possible.”
Fast facts
• In 2015-16, Australia’s total two-way trade in goods and services with Peru was worth $504m – up 19.4pc from the previous year.
• In 2015-16 Australia exported $6.7 million of agricultural products to Peru, and imported $114 million worth.
• Australia’s agricultural exporting strengths of beef, sheep meat, horticulture, wheat, barley, rice, canola and sugar are effectively shut out of the Peruvian market because of tariff barriers.