Australia has started negotiating a new free trade deal with Mexico, Chile, Peru and Colombia.
Work has also begun on expanding economic ties with Cuba.
Trade Minister Steve Ciobo on Saturday announced the Turnbull government had launched talks with the bloc of four Latin American nations in the hope of opening new markets for Australian exporters.
An agreement with the 'Pacific Alliance' would create new opportunities for farmers, miners, manufacturers, educators, service providers and investors.
"Importantly, this FTA will open the door to Mexico for Australian exporters," Mr Ciobo said in a statement.
The four countries imported more than $780 billion worth of goods and services combined in 2016, and account for 38 per cent of Latin America's population.
But high tariffs have prevented Australia from capitalising on the demand.
"An FTA will bring down these barriers and ensure Australian businesses have competitive access," Mr Ciobo said.
The Business Council of Australia and Minerals Council both welcomed the announcement, claiming a trade deal can deliver more local jobs.
Meanwhile, Foreign Minister Julie Bishop and her Cuban counterpart have agreed to establish a new mechanism to boost economic co-operation.
The memorandum provides for regular diplomatic consultations between the respective ministries.
It follows an agreement last year between the two nations to restructure Cuba's debt.
Australia also recently launched free trade negotiations with Hong Kong and Peru, while work is being done on deals with Indonesia and the European Union.
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