Korea had virtually concluded a bilateral free trade agreement (FTA) in December 2013. The successful conclusion of negotiations came four years and seven months after the first round of meetings began in May 2009.
The two parties reached an agreement that most of the export/import items will be tariff-free within eight years after the agreement becomes effective. For automobiles with a five percent tariff rate, a major Korean export item to Australia, they agreed that tariffs will be completely eliminated on 20 items (76.6 percent of the value of total imports) including gasoline-powered mid-sized cars and compact cars.
According to an explanation of the Ministry of Trade, Industry and Energy, while tariffs on autos, under other FTAs that Korea previously reached agreement on, would generally be scrapped after three to five years, under the Korea-Australia FTA, Korea could enjoy the tariffs being removed immediately after the FTA takes effect.
Tariffs on home appliances including TV, refrigerator, electronics and general machinery will be eliminated immediately after the FTA becomes effective while auto components will be tariff-free within three years.
The Minister of Trade Industry & Energy said the government will minimize any harmful impact that the market opening could have on the domestic market through a 15-year tariff concession and safeguard measures for agricultural products.
By Kim Min-su : Here
Korean-Machinery.com 
Leave a comment