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Decorative

Korea–Australia Free Trade Agreement

The Korea-Australia Free Trade Agreement (KAFTA), which entered into force on 12 December 2014, is a world-class and comprehensive bilateral agreement that substantially liberalises Australia’s trade with its fourth-largest trade partner. KAFTA protects and enhances the competitive position of Australian businesses in Korea and provides tariff elimination on nearly all Australia's current exports by value annually until 1 January 2032 when it is fully implemented. Under KAFTA, Australian services providers receive the best treatment Korea has agreed with any trade partner. Investment commitments in the Agreement promote investment in both directions.

The Regional Comprehensive Economic Partnership Agreement (RCEP) entered into force on 1 February 2022 for the Republic of Korea. Australian exporters may wish to use RCEP as an alternative to KAFTA.

Key benefits

Examples of benefits KAFTA provides for exporters include:

  • tariffs of up to 300 per cent eliminated on many Australian agricultural exports such as beef, wheat, sugar, dairy, wine, horticulture and seafood
  • tariffs eliminated on resources, energy and manufactured goods
  • new opportunities for Australian services in education, telecommunication, and a range of professional services, including financial, accounting and legal services.

See the factsheets below for more details:

Consultations and submissions

DFAT welcomes submissions from businesses or interested persons on the operation of KAFTA.

If you do not wish you submissions to be published on the DFAT website, please indicate this at the time of lodgement.

Information on KAFTA consultation processes and the submissions received during the negotiations on KAFTA can be accessed on Trove.

News

See the latest news on KAFTA, including the Summary of Outcomes from the Fifth Joint Committee meeting in April 2022.

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