While the Korea Australia Free Trade Agreement (KAFTA) has only been in force for one year, it is already making a big impact. According to statistics recently released by the Korea Customs Service, Korea’s exports to Australia rose by 7.5% year-on-year (exceeding US$10 billion). Coming at a time when Korea’s overall exports fell by 7.4%, it shows that KAFTA really is making a difference.
Australian consumers also now have access to a broader range of Korean products.
Korean consumers have more ready access to Australian clean and fresh produce, with exports of beef, nuts and brussel sprouts from Australia to Korea steadily increasing.
KAFTA’s third tariff cut came into effect on 1 January.
| Korean tariffs - Base rate | Tariff as at 1 Jan 2015 | Tariff as at 1 Jan 2016 | |
| Beef | 40% | 34.6% | 32% |
| Almonds | 8% | 6.4% | 5.6% |
| Macadamias | 30% | 18% | 12% |
|
Table grapes (seasonal) |
45% | 18% | 12% |
| Brussel sprouts | 27% | 19.2% | 15.4% |