Quick Guide: Key Industrial Products Outcomes
While many Australian resources and energy products already enter Korea duty free, Korea applies tariffs of up to 8 per cent on a range of resources, and tariffs of up to 13 per cent on manufactured products.
On entry into force, under KAFTA:
- 88 per cent of Australia’s manufactures, resources and energy exports will enter Korea duty free, with Korea phasing out all remaining tariffs within ten years;
- tariffs on priority products for Australia, including liquefied natural gas (3 per cent), titanium dioxide (6.5 per cent), unwrought aluminium (1 to 3 per cent) automotive parts such as engines and gearboxes (8 per cent) and sea salt (1 per cent), will be eliminated;
- 86 per cent of Korea’s manufacturing, resources and energy exports will enter Australia duty free, with Australia phasing out remaining tariffs for the most import-sensitive manufacturing products progressively within eight years.
Korea will also provide tariff-free entry for Australia’s pharmaceutical products (including vitamins) either immediately or within three years of entry into force. Korea’s tariffs on pharmaceutical products range up to 8 per cent.