The Australian Government’s move to negotiate a free trade agreement with the Pacific Alliance nations will open up promising new export markets and investment opportunities for Australia’s mining and mining services industries.
The four members of the Pacific Alliance – Mexico, Colombia, Chile and Peru – are amongst Latin America’s most dynamic economies, with a combined GDP of US$ 1.8 trillion and a population of more than 220 million people.
By reducing tariffs and other barriers to trade and investment, a free trade agreement with all four Pacific Alliance nations would create exciting opportunities for Australia, supporting local economic growth and jobs.
The Pacific Alliance countries have significant resources sectors and Australian mining companies are already engaged in exploration, services and mining operations in these countries.
Free trade agreement negotiations will provide an avenue for boosting the involvement of Australian mining and mining services businesses in these key Latin American economies.
A trade deal with the Pacific Alliance would also be a welcome shot in the arm for wider regional economic liberalisation and cooperation.
Australia’s economy has benefited enormously from the expansion of our trade and investment relationship with the Asian region over the last two decades.
The Government is to be congratulated for pursuing trade agreements with countries on the other side of the Pacific Rim, including the four Pacific Alliance members, which have the potential to deliver similar long-term benefits for Australia.