Australia-Republic of Korea Free Trade Agreement negotiations

Outcomes at a Glance

Outcomes at a Glance [PDF 54 KB]

The Korea-Australia Free Trade Agreement (KAFTA) is a world-class, comprehensive Agreement that substantially liberalises our trade with a major market. KAFTA gives Australian exporters significantly improved market access in goods and services and substantially improves investment protections.

For Australian goods exporters

On entry into force of KAFTA, 84 per cent of Australia’s exports (by value) to Korea will enter duty free, rising to 99.8 per cent on full implementation of the Agreement. As part of our commitments, Australia will remove its remaining tariffs on Korean goods on entry into force or over several years.

For agriculture, Korea will eliminate tariffs immediately on entry into force for raw sugar, wheat, wine, and some horticulture. Tariffs of up to 550 per cent on most other agricultural products will be eliminated within short time frames. Other key outcomes on agriculture include:

88 per cent of Australia’s manufactures, resources and energy exports will enter Korea duty free on entry into force of KAFTA, with all remaining tariffs phased out within ten years.

For Australian services suppliers

KAFTA will provide Australian services exporters with the best treatment Korea has agreed with any trading partner, on par with its agreements with the United States and Europe. Key outcomes include:

For Australian investors

KAFTA will improve opportunities and protections for Australian investors and investments in Korea and will help attract direct investment from Korea into Australia.

Helping Australian businesses

KAFTA contains commitments in a number of other areas which represent opportunities and advantages for Australian businesses, including: