Peru is positioning itself as Australia's gateway into South America as Trade Minister Don Farrell looks for new markets to shore up the nation's products against unexpected shocks.
Australia is pursuing a trade-diversification strategy after a years-long trade war with China tanked some producers and exporters overnight amid punitive tariffs or unofficial embargoes.
The Albanese government looking to India and Southeast Asia as growing economic hubs to spread its eggs and avoid an over-reliance on China.
But Peru's trade commissioner to Australia, Soledad Campos de Parry, says the opening of the Chancay port north of Lima in November will help reduce shipping times and costs between the Pacific coast, Australia and Asia.
Mining and critical minerals were major areas where investment could flow, she said ahead of Peru's prime minister, mining minister and economy minister head a 30-strong delegation to a major mining conference in Sydney.
It was easier to lean into increase critical minerals co-operation with the two nations already having a free-trade agreement, the trade commissioner said.
"Especially in the mining supply services for the sector because we have ... a tax incentive," she told AAP.
"We have a lot of expertise as well."
Some Australian 100 companies had invested more than $5 billion in Peru in the past four years following the free-trade agreement being inked, putting the nation at sixth spot for foreign investment in the South American country.
Australian exporters compete with Lima in agriculture products such as grains, beef, grapes and horticulture, but Peru remains a valuable market for barley, malt, frozen beef and red wine, according to Austrade.
Despite the competition, there were still opportunities to expand trade, Senator Farrell said.
The trade minister welcomed any expansion in the relationship with South America on top of established bilateral pacts and a trans-Pacific free-trade agreement.
"They are part of our diversification strategy," he told AAP.
"So what does that mean? Well, we want to sell more into China, but we want to sell more to the rest of the world."
Ms Campos de Parry said her nation was a strong performer in agriculture and that presented opportunities for investment, especially with the Chancay port offering greater access to Asia, including China, Japan and South Korea.
Australia is also watching the revival of talks between the European Union and the Mercosur South American trade bloc comprising Argentina, Brazil, Bolivia, Paraguay and Uruguay.
Talks between Canberra and Brussels broke down mainly due to impasses over agriculture.
"One of the obstacles to a better offer on agriculture from the Europeans was they had to say for the South American so it'll be interesting to see whether or not that that agreement gets up," Senator Farrell said.
