The sixth meeting of the Korea-Australia Free Trade Agreement (KAFTA) Joint Committee was held on 03 September 2024 in Perth. The meeting was Co-Chaired by Don Farrell, Minister for Trade and Tourism, Australia and Dr Cheong Inkyo, Trade Minister for the Republic of Korea (ROK).
They acknowledged the 10-year anniversary of KAFTA’s entry into force, commending the significant growth in two-way trade between the countries, and the mutual benefits derived from the success of the agreement over the past decade.
KAFTA is one of Australia’s most comprehensive trade agreements, delivering significant improvements in market access and tariff liberalisation for merchandise trade. Under KAFTA, Australian services providers receive advantageous treatment from the ROK.
The Joint Committee discussed the forward agenda for KAFTA and committed to ensuring the Agreement continues to generate opportunities for trade and investment. The Co-Chairs agreed to progress work on exchanging administrative import clearance data for the measurement of FTA utilisation rates.
Australia and South Korea (also known as the Republic of Korea, ROK) are comprehensive strategic partners with a strong bilateral relationship underpinned by shared strategic interests, complementary economies and strong people-to-people links. The ROK is Australia’s fourth largest two-way trading partner (AUD$77.6 billion in 2022-23), and third largest export market (AUD$49.5 billion in 2022-23).
These figures represent 5.8% of Australia’s total trade. The trade relationship is complementary, with Australia’s major exports including iron ore, coal, natural gas and beef, and our major imports from the ROK including refined petroleum and cars.
KAFTA protects and enhances the competitive position of Australian businesses in Korea and provides tariff elimination on nearly all Australia’s current exports by value annually until 01 January 2032 when it is fully implemented.
Business links are supported by the Korea-Australia Business Council and the Australia-Korea Business Council. Their annual joint meeting allows members to exchange views and expand private sector links between the countries.
Australia’s request to discuss improvements in goods market access under KAFTA was acknowledged at the meeting in Perth this week. Mr Farrell noted opportunities for market access improvements on a range of Australian agricultural products, which would align with access provided to the ROK’s other FTA partners and would demonstrate that KAFTA is a modern and comprehensive agreement that continues to provide benefits for businesses on both sides.
Also on the agenda were digital trade, opportunities relating to the new Future Made in Australia package, and the Agreement on Electronic Commerce (e-commerce) which was negotiated in the WTO, and released in July 2024.
Also see this related article from our archives: Korean Air Returns to Brisbane
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