- October 8, 2021
- Posted by: samdenis
Services account for about 80% of the Australian economy, but account for only 7% of the total value of two-way trade with Korea. NAFTA has achieved significant improvements in the two-way reduction of tariffs on goods between Australia and Korea. By 2033, 99.7% of Australian exports will be duty-free, and by 2021, 100% of Korean exports will be duty-free. In order to support the adaptation of certain market segments to this new regulatory framework, certain customs duties will be phased out, in particular for certain vehicles and motor parts, steel, chemicals, plastics and textiles, as well as clothing and footwear. According to the Australian Department of Foreign Affairs and Trade, Australia and Korea have “one of the strongest and most complementary trade relations in the Asia-Pacific region. Full implementation removes tariffs on 99.8% of Australian exports to Korea (by value). NAFTA is a world-class comprehensive agreement that significantly liberalizes Australia`s trade with Korea, our 4th largest trading partner. The agreement helps create a level playing field for Australian exporters competing with those from the US, the EU, Chile and the Association of Southeast Asian Nations (ASEAN) that benefit from existing trade agreements with Korea. The Korea-Australia Free Trade Agreement (also known as NAFTA) is a bilateral agreement to reduce trade and investment barriers between Australia and South Korea. The agreement was concluded and entered into force in 2014. Australia and South Korea have a strong and complementary trading relationship.
One of the key results of the entry into force of the agreement is that Australia and Korea are natural economic, political and strategic partners sharing common values and interests. . . .