The Korea–Australia Free Trade Agreement (KAFTA)
The Korea-Australia Free Trade Agreement (KAFTA) entered into force on 12 December 2014.
KAFTA eliminates or reduces barriers to the trade in goods between Korea and Australia. This benefits Australian businesses that seek to export Australian goods to Korea or want to import Korean goods for sale in Australia.
As a result of KAFTA, more than 99%of Australia's goods exports to Korea are eligible to enter duty-free or with preferential access.
Some of the key outcomes on entry into force of the agreement include:
- Korea eliminated tariffs on raw sugar, wheat, wine and some horticulture.
- Korea will eliminate its 40% tariff on beef by 1 January 2028, which will help to level the playing field for Australian beef exporters.
- Duty-free quotas for cheese, butter and infant formula and high tariffs will be eliminated on many dairy products by 1 January 2033.
- Tariffs on Australia’s manufactures, resources and energy exports will be phased out by 1 January 2023.
- Tariffs on priority products, including liquefied natural gas, titanium dioxide, unwrought aluminium, automotive parts, and sea salt, have been eliminated.
- Tariffs on all Australian pharmaceutical products (including vitamins) have been eliminated.