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?
- Opportunities for Australian and New Zealand Business in Korea
- South Korea Suspends Canadian Beef Imports over Mad Cow Disease Concerns
- New Zealand-Korea FTA Signed: Opportunities Abound for New Zealand Exporters
- KORUS FTA: Impacts on Trade & Investment for Korea and the States (Guest Post by NerdWallet Journalist)
- Korea inks FTA with China
- Korea Needs a Rugby Team: Sports as a Driving Force for Economic Growth in Advanced Economies like Korea by Daniel Gardner