Korean Australian Free Trade Agreement

The Korea-Australia Free Trade Agreement (also known as KAFTA) is a bilateral agreement to reduce trade and investment barriers between Australia and South Korea. The agreement was reached and came into force in 2014. Australia and South Korea have a strong and complementary trade relationship. Services account for about 80% of the Australian economy, but account for only 7% of the total value of two-way trade with Korea. 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. 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 in total, with a total of more than $30 billion in 2012-13. Austrade can help Australian companies become familiar with local market conditions and help develop export opportunities through a number of market and Australian services.

Australian Trade Minister Andrew Robb and Korean Trade Minister Yoon Sang-jick concluded negotiations on the agreement in early December 2013 and the text of the agreement, which was legally reviewed, was signed by chief negotiators on February 10, 2014. [1] In April 2014, Australian Prime Minister Tony Abbott led a trade delegation to Japan, South Korea and China. The three economies accounted for more than half of Australia`s two-way trade. [2] During the South Korean leg of the mission, Abbott signed the Australia-Korea Free Trade Agreement (KAFTA) with the government of Park Geun-hye on April 8 in Seoul. [3] The agreement came into force on December 12, 2014. [4] KAFTA has significantly improved the two-way reduction in tariffs on products between Australia and Korea. By 2033, 99.7% of Australia`s exports will be tariff-free and by 2021, 100% of Korean exports will be duty-free.