Peru-Australia Free Trade Agreement
The Peru-Australia Free Trade Agreement (PAFTA) maintains or provides for the elimination of import tariffs on a majority of goods and services traded between the two countries, including:
- Electric generation equipment
- Mechanical equipment, including pumps, appliances and other advanced machinery
- Electric motors, transformers, batteries and capacitors
- Motor vehicles
- Mineral ore and processed products including graphite, manganese, copper, aluminium and nickel
- Various products manufactured using above minerals and metals such as sheets, powders, bars, and plates
- Photovoltaic cells
The Agreement includes rules of origin and local content provisions. Goods are counted as originating from the country of export if they are wholly sourced obtained on the territory of one of the Parties, have undergone a significant production process there, or meet a product-specific minimum regional value content requirement.
Investment provisions laid out in the Agreement forbid performance requirements that require, as a condition of investment, export obligations, domestic content requirements, technology transfers and other non-tariff barriers. It also carries national treatment and most-favoured nation treatment provisions that require investors from either country to be treated equally to both domestic investors or those from any other nations.
The Agreement also allows Parties to take temporary safeguard measures in the event of serious financial difficulties, threats, or other exceptional circumstances.
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