Peru and Australia

Diplomatic ties were established in 1963 and ever since both countries have forged a solid ground of shared interests and mutual goals including trade liberalization, investments and regional cooperation. Peru and Australia are working closely on a wide range of multilateral fora, notably APEC that will be chaired and hosted by Australia in 2007 and Peru in 2008.

Bilateral economic relations are growing and diversifying. Australian investments in Peru amount to nearly A$ 1.5 billion and are focused mainly in mining and related services. Over thirty Australian companies are currently investing or having business with Peru including Rio Tinto, BHP, Brisbane based Xstrata Copper, AMCOR, Orica, Downing Teal, Southern Cross, Newcrest and SKM among others. Peru and Australia signed in 1996 an Agreement for Investments Promotion and Protection, which has boosted bilateral investments. Also Peru has proposed to start negotiations for a bilateral Free Trade Agreement. Peru is the 5th largest trade partner of Australia in Latin America and the 4th largest in terms of Australian investments. Bilateral trade is growing steadily reaching over 130 million dollars, twice the value of the 2000 figures.

Education is becoming also important in the bilateral agenda having both Governments signed a Memorandum of Understanding (May 2006) aimed at developing mutual cooperation in this field. Over 500 hundred Peruvians students are enrolled in Australian universities. The presence of a growing community of Peruvians living in Australia, mainly in Sydney and Melbourne, is also a matter that brings both countries together. Other areas of bilateral cooperation include monitoring of El Niño Phenomenon through an agreement signed between both authorities responsible for Meteorology.

Regional cooperation in different fora is to be outlined. Peru and Australia are members of a series of regional organizations having the Pacific Ocean as the great scenario of cooperation. These include APEC and other related organizations, as the Pacific Basin Economic Council (PBEC), Pacific Economic Cooperation Council (PECC) and the Forum for East Asia Latin America Cooperation (FEALAC). Equally important are the Antarctic Treaty, the Convention for Antarctic Living Marines Resources, and the ongoing negotiations for a South Pacific Regional Fisheries Management Organization (RFMO). Both countries support trade liberalization having Peru joined the Cairns Group in 2007 (agricultural trade liberalization).