NEW WESTERN AUSTRALIA DIRECTOR
The Australia Peru Chamber of Commerce Inc (APCCI) has appointed Ms Flor Canning as their Western Australian Director; Ms Canning was the Consul in Perth for Peru, she is a business coach with an MBA and more than 20 years’ experience as a Business Development and Public Relations professional, having held several senior executive positions, with a record of superior results in a variety of challenging diverse environments including the mining sector. Ms Canning is well positioned to bring new trade links between Western Australian and Peruvian exporters/importers.The APCCI is a Bilateral Chamber of Commerce formed in 1998 by a group of Australian Business people with a view to promote bilateral trade between Australia and Peru. APCCI is a registered Association in the State of NSW and has registered a Sister Chamber in Peru.Peru is a fast-growing economy and is one of Latin America’s top performers, it has 18 years of macroeconomic and financial stability to its credit. It has a well-established mining sector as is the world’s second biggest producer of silver, third biggest producer of copper and zinc, fourth biggest of tin and lead and the sixth biggest in gold, as well as equipment, technology and services sector (METS). According to the World Bank latest report, the 2018 GDP growth for Perú is expected to accelerate based on stronger private investment, especially mining, in response to the partial recovery of commodity prices. Increased public investment is also expected through the implementation of projects to rebuild after El Niño and to prepare for the Pan-American Games Peru will host in 2019, as well as through the acceleration of major infrastructure projects. In this context, the fiscal deficit is expected to peak this year, enabling a process of fiscal consolidation to begin in 2019, which will lead to a relatively rapid convergence toward a level of 1 percent GDP in 2021.According to the Australian Embassy in Perú, the commercial presence of Australia is about 90 companies principally in the Energy and Mining sector and could increase with the Free Trade Agreement between both countries. The new Free Trade Agreement between Australia and Peru will open greater investment opportunities in most of the sectors; according to Mooney’s, Focus Economics, and others forecasts the annual growth for 2018 heading to 4% as Peru ranks as of one the countries offering the greatest Public-Private Partnership investment opportunities and a strong private consumption growth.
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NEW WORLD TRADE OUTLOOK
New trade policies created by the U.S. specially the withdraw from the Trans Pacific Partnership, the prohibition of importing to the U.S. lemons from Argentina, and proposed increase of tariffs to reduce competition in this market, will change the outlook of world trade policies from the rest of the world.
These actions, in the short term will weaken the trade integration process with other Asia-Pacific nations; finding new markets will not be easy, as it will take time and resources to expand in these markets, something that becomes more complicated when in addition is the local export compliance of agricultural commodities.
Latin American nations are assessing their current environment and are looking for alternatives including the strengthening trade relationships with nations in Asia. Luckily, Australia, Canada, and New Zealand have confirmed their support to the TPP.
The outlook can be described as either as a “half cup-full” or “half cup-empty”. In the long term, it will allow the Latin American Nations to expand their trade and reduce the dependency on the traditional/historical one nation’s trade policy conditions.
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