CANBERRA, Feb 12 (Agencies): The governments of Australia and Peru signed off on the Peru-Australia Free Trade Agreement (PAFTA) Monday. Steven Ciobo, Australia's Trade Minister, finalized the deal, saying it would "create new Australian jobs and drive economic growth." The ratification of PAFTA represents the end of months of work on both sides after negotiations opened in May 2017. The nine-month turnaround from negotiations opening to the deal being closed on makes it the fastest FTA Australia has ever concluded.
Under the deal, tariffs on 99 per cent of Australian goods exported to Peru will be eliminated within five years.
Australia will become one of Peru's biggest suppliers of sugar, exporting 90,000 tonnes of the product to Peru within 18 years; the equivalent of 30 per cent of Peru's total sugar imports.
"This elimination of tariffs will help Australian farmers, who have effectively been shut out of the market until now, grow their exports. The more they export, the more Australian jobs they will create," Ciobo said on Monday.
"As one of our most ambitious trade agreements for services, PAFTA will create new opportunities for Australian education providers. Peru will recognize Australian degrees, helping Australian universities attract more Peruvian students to study in Australia.
"Peru is one of the fastest growing economies in the world with an average growth rate of 5.9 per cent over the last decade. This agreement gives Australian businesses the opportunity to share in the growth."
Two-way trade between Australia and Peru was worth 461 million U.S. dollars in 2016, a 51.2-per cent increase on the previous year.
In addition to sugar, PAFTA means that exports of Australian beef, dairy products, pharmaceuticals, horticulture products, kangaroo meat and wheat to Peru will also significantly increase.
Meanwhile, Australia opened a long-awaited inquiry into its massively-profitable finance industry Monday after a string of scandals rocked confidence in the sector.
The country's "big four" banks -- among the developed world's wealthiest --have been under increasing scrutiny in recent years amid allegations of dodgy financial and life insurance advice, and mortgage fraud.
There have also been claims of anti-money laundering laws being breached and benchmark interest rates rigged.
Prime Minister Malcolm Turnbull had long resisted Labor opposition calls for a royal commission into misconduct, claiming it would be a waste of money, but mounting political pressure forced his hand.
With uncertainty over the issue hurting offshore investor confidence, he announced the inquiry late last year to probe "the nation's banks, big and small, wealth managers, superannuation providers, insurance companies".
Australian Bankers' Association head Anna Bligh said the hearings may be uncomfortable.
"It's important that it (the inquiry) gets to the matters that have disturbed the public," she told ABC radio.
"I do expect this will be painful for banks and their staff."
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has the power to summon witnesses and take evidence.
While it can authorise police to apply for search warrants and witnesses who fail to appear may be arrested, it is not able to order compensation to those affected by any wrongdoings.
