Australia–Korea Free Trade Agreement

The Korea–Australia Free Trade Agreement (KAFTA) is a bilateral agreement seeking to reduce trade and investment barriers between Australia and South Korea. The agreement, which came into effect on the 12th of December 2014 provides Australian goods exporters, service providers and investors with significantly improved access to the South Korean market.[1] The trade agreement stems from decades of bilateral relations, encompassing security, trade and diplomatic ties from 1962, when then President Park Chung-Hee introduced a series of five-year plans designed to spur industrial development in Korea following the end of the Korean War.

Monthly value of Australian merchandise exports to South Korea (A$ millions) since 1988
Monthly value of South Korean merchandise exports to Australia (A$ millions) since 1988

The agreement

Australian Trade Minister Andrew Robb and Korean Trade Minister Yoon Sang-jick, concluded negotiations on the Agreement in early December 2013 and the legally verified text of the agreement was initialed by Chief Negotiators on 10 February 2014.[2] In April 2014, the Australian Prime Minister Tony Abbott led a trade delegation to Japan, South Korea and China. The three economies accounted for more than half of all of Australia's two-way trade.[3] On the South Korean leg of the mission, Abbott signed the Australia Korea Free Trade Agreement (KAFTA) with the government of Park Geun-hye in Seoul on 8 April.[4] The agreement came into force on 12 December 2014.[5]

According to Australia's Department of Foreign Affairs and Trade, Australia and Korea have "one of the strongest and most complementary trading relationships in the Asia-Pacific region. The Korea-Australia Free Trade Agreement (KAFTA) reduces trade and investment barriers, making it easier for Australians to do business with Korea – our 4th largest trading partner."[6]

Outcomes

The Australian agricultural industry has benefited the most from KAFTA, with exporters of beef, cheese, butter, malting barley and unroasted malt benefiting highly from the agreement as these commodities were previously subject to higher then average import tariffs. [7]

ROK-Australia Foreign Ministers bilateral meeting,13 October 2017.





References
  1. "KAFTA outcomes at a glance". Australian Government Department of Foreign Affairs and Trade. Retrieved 6 December 2021.
  2. Department of Foreign Affairs and Trade, About the Korea-Australia FTA, Australian Government
  3. Kennedy, Mark (11 April 2014). "Abbott in China shows skills beyond his years". The Sydney Morning Herald. Fairfax Media. Archived from the original on 15 May 2014.
  4. "Australia signs free trade agreement with South Korea in Seoul". ABC News. Australian Broadcasting Corporation. 8 April 2014. Archived from the original on 1 November 2016.
  5. Robb, Andrew (3 December 2014). "Robb announces Korea FTA to take effect in 9 days" (Press release). Archived from the original on 25 December 2014.
  6. KAFTA – a snapshot Archived 14 July 2014 at the Wayback Machine; DFAT
  7. Hyde, Mathew; Gunning-Trant, Caroline (1 July 2014). "Korea-Australia Free Trade Agreement". Agricultural Commodities. 4: 27 – via Informit.
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