SEOUL, KOREA - The governments of Australia and Korea have taken one step closer to signing a free trade deal, said Ministry of Trade, Industry, and Energy on February 13. According to a joint statement made public on the same day after the negotiators of the two countries signed a preliminary agreement, Australia will abolish the 5-percent tariff duties on gasoline-fueled small- and mid-size passenger cars, home appliances, and cold- and hot-rolled steel sheets immediately after the FTA takes effect.

 

For import duties imposed on large gasoline-powered cars, mid-sized diesel cars, and automotive parts, the two countries agreed to eliminate three years after the FTA's passage.

 

But there are concerns the bilateral pact could pose a threat to local farmers. For example, beef from Australia currently subject to a 40-percent duties will be reduced in stages for the next 15 years. For other 158 agricultural goods categorized as "sensitive items" including rice, barley, frozen pork belly, the current tariff rates will be maintained for the time being.

 

Two-way trade between Korea and Australia totaled over 30 billion US dollars in 2013. If the parliamentary passage of the FTA goes smoothly, the deal is expected to take effect next year.