On Thursday August 19 (AWST), the Australia-Latin America Business Council (ALABC) and the Peruvian Exporters Association (ADEX) signed a Memorandum of Understanding (MOU) for the establishment of the Joint Australia-Peru Business Council (APBC). The APBC is a high-level panel of senior business leaders with a remit to foster closer economic, trade and investment ties between Australia and Peru.
The signing ceremony was co-hosted by the Chairman of the Board of Directors of ALABC Mr. Richard Andrews, and by the Executive Director of ADEX Mr. Erik Fischer, and included the participation of the Ambassador of Australia in Peru HE Diana Nelson and the Ambassador of Peru in Australia HE Miguel Palomino de la Gala. The virtual signing ceremony was also witnessed by a number of senior industry representatives with significant businesses in both countries.
In his welcoming remarks, Mr. Erik Fischer highlighted the signing of the MOU as a new milestone in the consolidation of business relations between Australia and Peru; with the main objective of providing a regular forum for senior representatives from the private sector of both countries, to discuss more systematic bilateral business initiatives. This will promote and diversify the bilateral commercial relationship. “The current trade and investment figures demonstrate that the existing potential remains largely untapped. An essential role for the Australia-Peru Business Council is to encourage investor and business confidence and to look for new and emerging opportunities to build the commercial relationship further”, said Mr. Vasquez.
Mr. Andrews, Chairman of ALABC‘s Board of Directors, added that “this is the fourth binational business advisor group created by ALABC, following Chile, Central America and Mexico. This MOU represents a unique opportunity for Australian companies to access key players and decision makers in the Peruvian private sector”.
Latin America has been growing in economic importance for Australia in recent years. Peru signed a free trade agreement with Australia in 2019 and Australian companies hold significant investments in that nation. This basis for exchange has only been bolstered through both countries’ membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership – an accord that also includes Chile and Mexico.
Peru is also a member of the Pacific Alliance, a growing market for Australian goods and services.
While mining continues to be the underlying basis for Australia’s important investment and trading relationship with Peru, new opportunities are emerging in sectors such as education, mining technologies and services, agriculture, clean energy, and infrastructure. “The APBC will provide valuable advice and ideas to further diversify our commercial relationship, including to build technology partnerships in areas such as mining and agriculture.”, Ambassador to Peru, Diana Nelson concluded.
The bilateral business councils are unique instances of private sector cooperation, coordination and consultation whose objective is to increase business between two countries. They are made up of senior businessmen and executives of companies that have significant investments or trade flows with the countries that act as counterparts.