Australia Korea Trade Agreement: What You Need to Know
The Australia-Korea Free Trade Agreement (KAFTA) is a comprehensive, high-quality agreement that came into force on December 12, 2014. The agreement provides Australian businesses with greater access to the Korean market and vice versa, removing barriers and reducing tariffs on a wide range of goods and services.
Benefits for Australian Exporters
KAFTA provides Australian exporters with a competitive edge in the Korean market. The agreement eliminates tariffs on a wide range of goods, including beef, dairy, wine, and pharmaceuticals. This means that Australian businesses can access the Korean market at a lower cost, making their products more affordable and competitive in the Korean market.
In addition, KAFTA provides Australian businesses with improved access to Korean government procurement opportunities. This includes a commitment by Korea to publish details of procurement opportunities on a public website, giving Australian businesses greater visibility and access to these opportunities.
Benefits for Korean Exporters
KAFTA also provides Korean exporters with greater access to the Australian market. The agreement eliminates tariffs on a range of Korean goods, including automobiles, steel, and textiles. This means that Korean businesses can access the Australian market at a lower cost, making their products more affordable and competitive.
In addition, KAFTA provides Korean businesses with improved access to Australian government procurement opportunities. This includes a commitment by Australia to publish details of procurement opportunities on a public website, giving Korean businesses greater visibility and access to these opportunities.
What`s Next?
Since KAFTA came into force, trade between Australia and Korea has continued to grow. In 2020, Korea was Australia`s fifth-largest trading partner, with two-way trade valued at $29.8 billion. The agreement has provided significant benefits to both countries, creating new opportunities and improving access to markets.
As we move forward, there are opportunities to build on the success of KAFTA and further strengthen the economic relationship between Australia and Korea. This includes exploring new areas for trade and investment, such as digital trade, and continuing to improve market access and reduce barriers to trade.
Conclusion
KAFTA is a significant achievement in the economic relationship between Australia and Korea. The agreement provides significant benefits to both countries, improving access to markets and creating new opportunities for trade and investment. As we move forward, there are opportunities to build on the success of KAFTA and further strengthen the economic ties between our two countries.
