Australia-Korea Free Trade Agreement: under negotiation 

About the Australia-Korea FTA negotiations

An FTA between Australia and the Republic of Korea (ROK) offers significant opportunities to further strengthen our highly complementary and growing bilateral trade and investment relationship, and deliver gains to both countries through closer economic integration.

On 5 March 2009, former Prime Minister Kevin Rudd and Korean President Lee Myung-bak agreed to launch bilateral FTA negotiations. On 10 March, Mr Simon Crean, then Minister for Trade, made a statement to Parliament on the launch of negotiations, and tabled a document summarising the views gathered during the ongoing public consultation process.

The ROK is one of Australia's largest export markets and overall trading partners. Our objective in the negotiations is to put Australian exporters on an equal footing with US and EU competitors which have obtained improved access to the Korean market through their own FTAs. The agreement would also include strong liberalising commitments by Korea in services, while Australia would eliminate its remaining tariffs on auto imports from Korea and would liberalise its foreign investment requirements.

Key interests and benefits

• Improved flows of goods and services through the removal or reduction of regulatory barriers.
• Reduced transaction costs and improved efficiency through the removal or reduction of tariff and non-tariff barriers to bilateral trade in goods.
• Enhanced bilateral investment flows: greater Korean investment in Australia including in the resources sector, which would create jobs in Australia and safeguard Korea’s energy and resource security, and an expansion of existing Australian investment in Korea’s financial services sector.

News

Prime Ministers Gillard and Lee push for 2011 FTA conclusion - April 2011

At their meeting on 25 April in Seoul Prime Minister Gillard and Korea's President Lee agreed that the free trade agreement negotiations were in their final stage and expressed their joint goal that negotiations should conclude in 2011.

• Statement: Joint press statement with the President of the Republic of Korea
• Speech: PM addresses Korean International Trade Association Dinner

Fifth round of negotiations - 4 June 2010

The fifth round of FTA negotiations between Australia and Korea was held in Canberra from 25 to 28 May 2010.

The Korean delegation, of 55 officials in total, was led by Chief FTA negotiator, Lee Tae-ho, from the Korean Ministry of Foreign Affairs and Trade (MOFAT). Jan Adams, First Assistant Secretary of DFAT's FTA Division, led an Australian delegation of about 50 officials from a wide range of Australian Government agencies.

Newsletter: Overview of developments at the fifth round of negotiations

Forth round of negotiations - 31 March 2010

The fourth round of FTA negotiations between Australia and Korea was held in Seoul from 15 to 19 March 2010.

The Korean delegation, of 65 officials in total, was led by Chief FTA negotiator, Director General Lee Tae-ho, from the Korean Ministry of Foreign Affairs and Trade (MOFAT).

Newsletter: Update #4– Fourth Negotiating Round – 31 March 2010

Third round of negotiations - 21 December 2009

The third round of FTA negotiations between Australia and Korea was held in Canberra from 30 November – 4 December 2009.

The Korean delegation, of 85 officials in total, was again led by chief FTA negotiator, Director General Lee Tae-ho, from the Korean Ministry of Foreign Affairs and Trade (MOFAT).

Newsletter: Update #3– Third Negotiating Round – 21 December 2009

Second round of negotiations - 17 September 2009

The second round of FTA negotiations between Australia and Korea was held in Seoul from 31 August – 4 September 2009.

The Korean delegation, of about 90 officials in total, was led by newly-appointed chief FTA negotiator, Director General Lee Taeho, from the Korean Ministry of Foreign Affairs and Trade (MOFAT).

Newsletter: Update #2– Second Negotiating Round – 17 September 2009

First round of negotiations - 3 June 2009

The first round of FTA negotiations between Australia and Korea was held in Melbourne and Canberra from 18-22 May 2009.

Newsletter: Update #1– First Negotiating Round – 3 June 2009

Free Trade Negotiations with South Korea Underway - 18 May 2009

The Minister for Trade, Simon Crean, and the Republic of Korea's Minister for Trade, His Excellency Mr Kim Jong-hoon, met today in Melbourne for talks aimed at further strengthening the bilateral trade and investment relationship.

Media release: Free Trade Negotiations with South Korea Underway

Submissions

Guidance on preparing submissions

The Department of Foreign Affairs and Trade welcomes public submissions and comment on a possible Australia-Korea FTA. Your written submission may take several forms – from a short email through to a more comprehensive analytical paper.

In your submission, you may wish to focus on specific market access challenges and other issues of importance in the Korean commercial operating environment, particularly with respect to trade in goods and services, and investment. Alternatively, you may wish to raise more general issues associated with the impact of an FTA on Australia.

Overall, the Government is inviting stakeholders to consider and comment on the commercial, economic, regional, social, cultural, regulatory and environmental impacts that could be expected to arise from Australia's participation in an FTA with Korea.

In terms of goods (merchandise) trade, we are interested in gauging stakeholder views concerning issues associated with market access including, but not limited to, tariffs, import licencing, technical barriers to trade (for example certification and standards) and rules of origin issues.

In the case of services, stakeholder views might include comment on issues such as foreign equity limitations and other conditions, qualifications recognition, limitations on branch offices, licensing, and visa and residency issues. In the area of investment, we would welcome stakeholder views on issues including, but not limited to, conditions and restrictions on foreign investment (including in particular sectors), transfers of capital and profit repatriation, joint venture regulations and licence requirements.

We also welcome your views on any cross-sectoral problems that you anticipate, or have encountered, in doing business with Korea that could be addressed through this FTA. These concerns may include intellectual property rights, transparency of government regulations, tendering processes, government procurement or competition-related issues. Observations based on past experience in Korea or in other markets that may have some bearing upon the proposed FTA negotiations would be received with interest.

In making your submission, please indicate whether you or your organisation would want your submission to be made publicly available — unless notified otherwise, we would intend to place submissions on this website.

Send submissions to:

• Email: KoreaFTA@dfat.gov.au
• Fax: (02) 6261 2187
• Mail:
  Korea FTA Coordinator
  Free Trade Agreement Division
  Department of Foreign Affairs and Trade
  RG Casey Building
  John McEwen Crescent
  Barton ACT 0221

Submissions received

• ANZ Bank (February 2009)
• Australia Korea Business Council (February 2009)
• Australian Bankers Association (January 2009)
• Australian Chamber of Commerce and Industry (ACCI) (February 2009)
• Australian Council of Trade Unions (ACTU) (February 2009) 
• Australian Council of Wool Exporters and Processors (February 2009) 
• Australian Dairy Industry Council (January 2009)
• Australian Electrical and Electronic Manufacturers' Association (AEEMA) (March 2007)
• Australian Fair Trade and Investment Network (AFTINET) (January 2009)
• Australian Food and Grocery Council
• Australian Industry Group (AiG) (February 2009)
• Australian National University (ANU)
• Australian Nursing and Midwifery Council (ANMC) (January 2009)
• Australian Nursing Federation (ANF) (January 2009)
• Australian Oilseeds Federation (April 2009)
• Australian Plantation Products and Paper Industry Council (A3P) (November 2009)
• Australian Pork Limited (February 2009) 
• Australian Recording Industry Association (ARIA) /Music Industry Piracy Investigators (MIPI) (January 2009)
• Australian Wine and Brandy Corporation (AWBC) (January 2009)
• BHP Billiton Limited (January 2009)
• BlueScope Steel
• Commonwealth and Public Sector Union (CPSU) - State Public Services Federation Group (January 2009)
• Compassion in World Farming (February 2009)
• Engineers Australia (January 2009)
• Ford Australia  
• Frosty Boy (January 2009)
• Generic Medicines Industry of Australia (GMIA) (January 2009)
• GM Holden
• Horticulture Market Access Committee (Horticulture Australia Ltd)
• International Legal  Services Advisory Council (ILSAC) (February 2009)
• International Trademark Association (INTA) (June 2009)
• Investment and Financial Services Association (IFSA) (January 2009)
• Macquarie Bank
• Mariani Foods (February 2010)
• Maryborough Sugar
• Meat and Livestock Association (MLA)
• Media, Entertainment and Arts Alliance (MEAA) (March 2009)
• Monash University (February 2009)
• Mulwarra Exports
• Music Council of Australia (MCA) (July 2009)
• National Farmers' Federation (NFF)
• Mr Jean Ough (January 2009) 
• Queensland Law Society (August 2009)
• Ricegrowers Australia (June 2007) 
• Seafood Services Australia, on behalf of Seafood Access Forum
• Government of South Australia (April 2009) - letter and public submission.
• Mr Richard Stone (January 2009)
• TAFE Directors Australia (February 2009) 
• Toyota Motor Corporation Australia (September 2009)
• Thoroughbred Breeders Australia (March 2009)
• Universities Australia (February 2009)
• University of Newcastle (July 2009)
• Government of Victoria (June 2009) - letter and public submission 
• Department of Agriculture and Food, Western Australia (February 2009) 
• Dr Brett G Williams (February 2009) 

Doing business in Korea

Austrade has identified potential opportunities for Australian suppliers of goods and services in a number of sectors. Austrade's Republic of Korea country page supplies general information on doing business and on specific export opportunities. The Austrade website has a database that can be searched by industry.

Resources

Australia-Republic of Korea FTA Study

In April 2008, a joint non-government study into the feasibility of a free trade agreement between Australia and the Republic of Korea was released. The study, conducted by ITS Global, a Melbourne-based trade consultancy, and the Korea Institute for International Economic Policy (KIEP), concluded that a free trade agreement between Australia and Korea that liberalised substantially all barriers to trade and investment offered significant opportunities to further strengthen our highly complementary and growing bilateral trade and investment relationship, and deliver gains to both countries through closer economic integration. Economic modelling undertaken for ITS estimated that a comprehensive FTA covering goods and services trade and investment would increase the present value of real GDP of Australia by US$22.7bn and of Korea by US$29.6bn over the period 2007-2020.

• Media release: Study Reveals Gains to Australia from FTA with Korea, Former Minister for Trade, Simon Crean, 22 April 2008
• Australia-Republic of Korea Joint Non-Government FTA Study [PDF 800 KB]

Media releases

• Free Trade Negotiations with South Korea Underway
• Australia and Korea launch FTA negotiations

Statements

• Joint Statement on Enhanced Global and Security Cooperation between Australia and the Republic of Korea by the former Prime Minister of Australia, Kevin Rudd, and the President of the Republic of Korea, Lee Myung-bak - 5 March 2009
• Ministerial Statement to the Parliament on the launch of FTA negotiations with Korea

• Views expressed in public consultations for participation in FTA negotiations with the Republic of Korea - 10 March 2009

More about the Republic of Korea.

Contact us

If you would like to know more about the Australia-Korea Free Trade Agreement negotiations, contact:

• Email: KoreaFTA@dfat.gov.au
• Fax: (02) 6261 2187
• Mail:
  Korea FTA Coordinator
  Free Trade Agreement Division
  Department of Foreign Affairs and Trade
  RG Casey Building
  John McEwen Crescent
  Barton ACT 0221