An overview: Australia and Latin America Trade
When you think about Australia and Latin America in the context of trade, at first thought, most people will think it is an odd business pairing. The first thing people will think about is their geographical distance, with the vast Pacific Ocean separating them.
But what most people have missed out is the fostering economic relations between Australia and the Latin American countries, making geographical reasons insignificant to develop a productive foreign relation.
This unlikely trade relation is a product of globalization and the eagerness to create new markets and businesses that will expand profits. For the past years, Australia is continuously building its foreign relationship with Latin American countries, creating new programs and dialogues to further their trade and to create new means of expanding their bilateral relationship in terms of business and migration.
The Australian government is working hard to promote their relationship with Latin America, by launching different bilateral agreements and programs to strengthen their trade and global ties. In the past few years, Australia is putting efforts to legitimize their affairs, creating some legislative actions:
- Recently created back in February 2018, New Free Trade Agreement is a program between Peru and Australia (PAFTA).
- Pacific Alliance-Australia Free Trade Agreement is an agreement to explore and to do new business opportunities for Australian exporters in Latin America. And same for the side of Latin America, this agreement encourages them to build new trades with Australia.
- Back in 2009, Australia-Chile Free Trade Agreement was established.
- To do develop Australia and Latin America countries’ fair trade in agriculture, The Cairns Group is founded.
Because of these agreements, Latin America and Australia have strengthened their individual economy. Both regions have experienced substantial growth, in terms of trade and commerce. Additionally, Australia has become a destination for Latin American exports, with service and products entering the Australian market. For the part of Latin America, their relation with Australia has brought expansion economically, bringing in more investment and opening new opportunities.
Even with challenges—namely language barrier, geographical distance, and cultural differences, both have found a middle ground to create a harmonious business culture. With such differences, Latin America and Australia have developed the same language for trade, maintaining their businesses goals intact for the benefit of both sides. Even how unlikely business can be, Australia and Latin America just prove that, with one goal, there’s no hindrance to growth.