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 progressively phasing out all remaining tariffs by 1 January 2023;
- 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), have been eliminated;
- 86 per cent of Korea’s manufacturing, resources and energy exports will enter Australia duty free, with Australia progressively phasing out remaining tariffs for the most import-sensitive manufacturing products by 1 January 2021.
Korea elimated its tariffs on almost 90 per cent of Australia’s pharmaceutical products (including vitamins) on entry into force. Tariffs on the rest of these products will be progressively eliminated by 1 January 2016. Korea’s tariffs on pharmaceutical products range up to 8 per cent.