Notice of Entry into Force of the Peru-Australia Free Trade Agreement

Overview

The Customs Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Act 2019 was enacted by the Parliament of Australia to facilitate the entry into force of the Peru-Australia Free Trade Agreement. This legislation was introduced to address the need for streamlined trade relations with Peru, aiming to bolster Australian exports and economic ties within the Asia-Pacific region. By formalising the trade agreement, the Act seeks to reduce tariffs and non-tariff barriers, thereby enhancing market access for Australian goods and services in Peru and vice versa. The policy objective articulated within the Act is to support economic growth through increased trade opportunities, reflecting Australia's commitment to fostering stronger international trade partnerships.

Scope and Application

The Customs Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Act 2019 applies to all entities and individuals involved in the importation and exportation of goods between Australia and Peru following the entry into force of the Peru-Australia Free Trade Agreement on 11 February 2020. This Act facilitates the reduction or elimination of customs duties and trade barriers on various goods traded between the two countries, thereby promoting and enhancing trade relations. The geographic reach of this Act encompasses both Australia and Peru, extending its application to all industries and transactions involving the specified goods as outlined in the Free Trade Agreement. Notably, the Act may be subject to further clarification or extension through subordinate instruments, which would detail specific provisions and amendments as necessitated by the evolving nature of international trade agreements. The Act does not specify exclusions or exemptions but rather focuses on the overarching facilitation of trade between the two nations, thus encouraging economic collaboration and growth.

Key Provisions

The Customs Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Act 2019 primarily operates to formalise the entry into force of the Peru-Australia Free Trade Agreement (FTA) as of 11 February 2020. This legislative instrument is articulated in section 1, which sets out the date on which the FTA becomes effective for Australia. This section is crucial as it provides a legal basis for the commencement of the trade agreement, thereby facilitating the implementation of its provisions. The Act imposes obligations on the parties involved, particularly the Australian government, to ensure that the trade agreement is adhered to and that the benefits of the FTA are realised. This includes the establishment of regulatory frameworks that support the streamlined exchange of goods and services between Australia and Peru. The Act also mandates the government to communicate effectively with stakeholders to ensure a smooth transition into the new trade relationship. Furthermore, it requires the government to monitor and enforce the compliance of both Australian and Peruvian entities with the terms of the FTA. Violations of the Peru-Australia Free Trade Agreement may result in civil or criminal consequences. Under section 4 of the Customs Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Act 2019, breaches of the agreement could lead to penalties, although the specific penalties are not detailed in the notifiable instrument itself. For instance, parties failing to comply with the terms of the FTA may face fines, legal action, or other administrative penalties as outlined in the respective laws governing international trade. The maximum penalties are not explicitly stated in this notice but would be determined by the applicable trade laws and regulations. The enforcement of these penalties ensures that the integrity of the FTA is maintained and that both countries can benefit from the reduced trade barriers and increased market access.