The Korea‐Australia Free Trade Agreement (KAFTA) entered into force on 12 December 2014.  KAFTA supports one of the strongest and most complementary economic relationships in the Asia‐Pacific region.  As a world‐class and comprehensive bilateral agreement, KAFTA substantially liberalises Australia’s trade with its fourth‐largest trade partner.

The Agreement protects and enhances the competitive position of Australia’s businesses in South Korea. Australian exporters gain significantly improved market access in goods, with tariff elimination on nearly all Australia’s current exports by value by full implementation of the Agreement. Under KAFTA, Australian services providers receive the best treatment Korea has agreed with any trade partner. Investment commitments in the Agreement protect and enhance investment in both directions.

For all enquiries please call (08) 8300 0083 or email [email protected]
 

KAFTA: The Benefits For Australia

Free trade agreements provide a framework for Australia's commercial relationship with trading partners, increase trade and investment opportunities, bring money into the Australian economy and help create jobs. Australia pursues high‐quality, comprehensive trade agreements when they offer net benefits to Australia, are World Trade Organization‐consistent and support the global trade system.

Australia is already benefiting from FTAs with New Zealand, Singapore, Thailand, US, Chile, ASEAN (with New Zealand) and Malaysia. These FTAs are helping Australians access new markets and expand trade in existing markets.

KAFTA will make Australian exporters more competitive in the Korean market particularly in the following industries;

• Meat
• Wheat
• Sugar
• Dairy
• Wine
• Horticulture
• Seafood
• Automotive supplies
• Resources and energy industries

 

KAFTA: the Benefits To Your Business

KAFTA secures Australia’s competitive position in the Korean market, where some competitors already enjoy preferential access.

On entry into force of KAFTA, 83 per cent of Australia’s goods exports (by value 2015) will enter Korea duty free. The proportion of trade being made duty‐free (or covered by preferential tariff quotas) by the FTA is rising each year as tariffs are cut further, and will reach 99.7 per cent coverage on full implementation of the Agreement.

KAFTA provides new market access for suppliers of legal, accounting and telecommunications services and guarantees open access across a broad range of other services sectors, including financial services and education.

Under KAFTA, Korea will have access to the higher Foreign Investment Review Board screening threshold. This is expected to help diversify and grow investment from Korea into Australia.

KAFTA will also lower the cost of Korean products and inputs for Australian businesses as Australia removes tariffs on Korean goods.

Read more on the Korea - Australia Economic Partnership Agreement.


For all enquiries please call (08) 8300 0083 or email [email protected]