Does Australia Have A Free Trade Agreement With South Korea

Liberal MP Sharman Stone, representing Murray`s Victorian ally, criticised the deal for failing to cut tariffs on a number of Australian food exports. Does the deal offer the best Australian job offer? Is the promised access to Korean markets real? Is Australia`s ability to legislate on domestic policy issues in the national interest compromised? This publication was drafted prior to the current government The Korea-Australia Free Trade Agreement (KAFTA) came into force on December 12, 2014. The Republic of Korea is the world`s twelfth largest economy and asia`s fourth largest. It is Queensland`s third largest trading partner with exports worth $4.7 billion, or about 10% of Queensland`s total merchandise exports. The full text of the agreement as well as useful information on FTAs and fact sheets are available on the website of the Ministry of Foreign Affairs and Trade (DFAT) For any specific questions regarding the agreement, the E-Mail-KoreaFTA@dfat.gov.au or the DFAT phone on 02 6261 1111. Total Korean investment in Australia in 2014-15 was valued at $22.89 billion. KAFTA allows for an increased flow of Korean investment by increasing the screening threshold at which Korean investments in non-sensitive sectors are considered by the Foreign Investment Review Board to be considered by the Foreign Investment Review Board from $252 million to $1,094 million, which is the best status granted to the United States and New Zealand. It is particularly disappointing that apples, pears and honey are not exempt from existing exorbitant tariffs, pork or condensed milk, as Australia enjoys disease-free status for these products, which are unmatched in the world. In contrast, Trade Minister Andrew Robb wanted to announce Korea`s agreement to phase out its 40-72% tariff on Australian beef over a 15-year period. The lab knows that removing trade barriers can boost Australia`s economic growth, create more competitive local industries, create jobs and offer consumers more choice and lower prices. Free trade agreements have the potential to bring huge benefits to Australian consumers, workers and businesses – but harnessing that potential depends on the quality of the agreements governments negotiate. Austrade can help Australian companies become familiar with local market conditions and help develop export opportunities through a number of market and Australian services.

Australia and Korea are natural economic, political and strategic partners, with common values and interests. Korea is Australia`s third largest export market and its fourth largest trading partner, with a total of more than $30 billion in 2012-13. Kafta is a global, world-class agreement that significantly liberalizes Australia`s trade with Korea, our fourth largest trading partner. The agreement helps create a level playing field for Australian exporters that compete with those of the United States, the EU, Chile and the Association of Southeast Asian Nations (ASEAN) that benefit from existing trade agreements with Korea.