Overview

Negotiations for a Peru-Australia free trade agreement (PAFTA) began in May 2017. The deal was signed on February 12, 2018. The text was released and the first JSCOT inquiry on the implementing legislation reported on August 22, 2018.

Australia launches free trade negotiations with Peru

24 May 2017: Australia launched free trade negotiations with Peru. Find out more including about making a submission here and read AFTINET's submission here.

It is reported that they aim to finalise a deal by the end of the year and that an FTA with Peru could lead to new deals with Mexico and Colombia along with an update of the existing agreement with Chile.

As always we will be monitoring these negotiations for any human rights, labour rights or environment concerns.

Greenpeace report: ISDS empowers global corporations at the expense of people and planet

January 19, 2018: A new report by Greenpeace, Justice for People and Planet, uses 20 case studies of global corporations to explain how corporate power is being used to violate human rights and environmental rights. The report argues that governments should adopt 10 Principles for Corporate Accountability to curb ‘corporate capture, collusion and impunity’.

The report discusses the negative impacts of trade and investment agreements on people and the planet. Greenpeace notes that there are thousands of bilateral and multilateral free trade agreements, bilateral tax treaties and investment treaties that are currently helping to protect foreign investment companies, by granting them extensive property rights and powers under investor state dispute settlement schemes (ISDS).

ISDS tribunal awards $24 million to mining company that ignored Indigenous land rights

March 23, 2018: An international investment tribunal has compensated a mining company that ignored Indigenous land rights in a case heard under the Investor-State Dispute Settlement provisions of the Canada-Peru Free Trade Agreement.

The tribunal ordered the government of Peru to pay Bear Creek Canadian mining company  $18.2 million in compensation and $6 million in legal costs because the government cancelled a mining license after the company failed to obtain informed consent from Indigenous land owners about the mine, leading to mass protests.

AFTINET submission: The Peru-Australia Free Trade Agreement (PAFTA)

May 3, 2018: The AFTINET submission to the Peru-Australia Free Trade Agreement is available to read in full here, and summarised below. The JSCOT report is due on August 22, 2018, after which Parliament will consider the implementing legislation. Our assessment is there is insufficient information for support the implementing legislation.

Relationship between PAFTA and the TPP-11

Parliamentary committee to revisit Peru – Australia trade agreement: submissions due 2 November

29 October 2018: AFTINET welcomes the announced review of the Peru-Australia trade agreement (PAFTA), which shares with the controversial Trans-Pacific Partnership Agreement (TPP-11) many harmful provisions. PAFTA was signed by the government in February 2018 and reported on by the Joint Standing Committee on Treaties in August 2018 (JSCOT).

AFTINET opposed the inclusion in PAFTA of harmful Investor State Dispute Settlement (ISDS) provisions that allow corporations to sue governments for regulating in the public interest.  We also objected to the confusion created by overlap with the TPP-11 and with the Pacific Alliance trade agreement (under negotiation). Peru is a member of both of these agreements.

Peru FTA is first test of Labor’s new trade policy and should not be ratified says AFTINET

Media Release 8 November 2018: “AFTINET welcomes the Labor Opposition initiative to revisit the Peru-Australia Free Trade Agreement (PAFTA) because it includes foreign investor rights to sue governments (ISDS) which the Shadow Trade Minister has pledged to oppose in all trade agreements,” AFTINET Convener Dr Patricia Ranald said today.

Peru FTA is first test of Labor’s new trade policy and should be opposed says AFTINET

Media release 21 November 2018: “We are disappointed but not surprised that the majority report of the Government - dominated Joint Standing Committee on Treaties (JSCOT) has recommended ratification of the Peru-Australia FTA,” AFTINET Convener Dr Patricia Ranald said today.

“AFTINET welcomed the Labor Opposition initiative to revisit the Peru-Australia FTA (PAFTA) because it duplicates the TPP-11 and includes foreign investor rights to sue governments (ISDS) which the Shadow Trade Minister has pledged to oppose in all trade agreements,” said Dr Ranald.

Labor to oppose ISDS in Peru and Indonesia FTAs

Monday March 25, 2019: The Australian reports that Federal Labor Trade Spokesperson Jason Clare has confirmed that Labor in government would seek to remove Investor-State Dispute Settlement clauses from the Peru and Indonesia FTAs, which the Morrison government has signed but not ratified.

Labor policy also commits it to oppose ISDS while in Opposition, and the Peru FTA implementing legislation could be put to the parliament before the federal election is called.

Peruvian Trade Minister Edgar Vasquez has ruled out renegotiating the FTA because his government has already ratified it. The Australian Department of Foreign Affairs and Trade stated that any attempt by Labor to remove the ISDS clauses would delay both the Peru and Indonesia agreements.

Subscribe to