Our Australian clients have noted that they hope that Australia and Korea can complete an FTA soon, since they are now at a stark disadvantage to lower cost and now lower tariff American products.
Australia has been benefited greatly by the Mad Cow Farce and it aggressive advertising in Asian markets, including Korea. Korea is, now, Australia's third-largest importing country of beef and a major importer of dairy, agricultural and wine products. Many of the beef cuts exported to Korea are high-margin cuts with low value in the West and in the Pacific, because of Korea's unique valuation of cuts.
The implementation of the KOR-US FTA has led to the reduction in the 40% tariff on beef by 2.5%. The tariff will be further reduced over the next five years.
What do you think - will Australia pen a FTA with Korea?