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. 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. When KAFTA came into force in December 2014, 84% of Australia`s merchandise exports (by value) arrived duty-free. Full implementation removes tariffs on 99.8% of Australian exports to Korea (by value). Australia and Korea are natural economic, political and strategic partners sharing common values and interests. Korea is Australia`s 3rd largest export market and the 4th largest global trading partner, with two-way trade totalling more than $30 billion in 2012-13.
Services account for about 80% of the Australian economy, but account for only 7% of the total value of dual-road trade with Korea. 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. The Korea-Australia Free Trade Agreement (NAFTA) reduces barriers to trade and investment and makes it easier for Australians to do business with Korea, our fourth largest trading partner.  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 initialled by chief negotiators on 10 February 2014.  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 total trade.  During the South Korean leg of the mission, Abbott signed the Australia-Korea Free Trade Agreement (KAFTA) with Park Geun-hye`s government on April 8 in Seoul.  The agreement entered into force on 12 December 2014.  The full text of the agreement as well as useful information and factsheets on free trade agreements are available on the website of the Ministry of Foreign Affairs and Trade (DFAT) For any specific questions about the agreement, send an e-mail KoreaFTA@dfat.gov.au or call DFAT on 02 6261 1111. . . .