Australia, New Zealand enter trade talks with ‘Pacific Alliance’

The two Pacific Rim nations are looking to lower high tariffs and increase markets overseas with the four Latin American countries that make up the Pacific Alliance – Mexico, Peru, Chile and Colombia.    Australia and New Zealand have entered into discussions over a potential free trade agreement with the Pacific Alliance nations of Mexico, Colombia, Chile and Peru, the two countries said in a joint statement.
   The alliance represents dynamic Latin American economies with a combined GDP of $1.8 trillion, opening up new export markets and investment opportunities for Australian and New Zealand industries.
   Following the collapse of the sweeping Trans-Pacific Partnership (TPP) deal that would have comprised 12 nations including the United States, a new agreement is vital for Australia and New Zealand as both countries are heavily reliant on trade. For Australia, an agreement with the Pacific Alliance would bolster farm, mining and manufacturing industries, which are currently limited by high tariffs, according to the Minerals Council of Australia.
   Both nations were proponents of continuing work on the now-11-nation TPP even after the U.S. withdrew from the agreement in January. As such, Australia began free-trade talks with Peru in an effort to widen commerce with other countries in the region and as a buffer against U.S. protectionism. As a member of the Pacific Alliance, Peru was viewed as a stepping stone to reach an agreement with the rest of the alliance, according to a recent report from Fox Business.
   “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,” said the Minerals Council of Australia.