March 6, 2009

Australia's beef farmers are hoping that beef exports to South Korea will be made tariff-free after the two countries agreed to begin negotiations on a free trade agreement in May.

The Australian economy could gain US$35 billion over the next 15 years if a successful FTA can be concluded with South Korea.

Australian farmers are crossing their fingers that a deal struck by the US-South Korea FTA, which has tariffs on beef shipments coming down from 40 percent to zero over 15 years, will be made for Australia.

It is important that Australian beef producers achieve parity with the US, said Cattle Council of Australia executive director David Inall.

The US is Australia's biggest competitor in the South Korean beef market, and achieving a comparative advantage is vital to expanding beef exports to South Korea of nearly US$1 billion per year, according to Inall.

Trade Minister Simon Crean said it is important for Australia to push ahead quickly with the negotiations, as some concessions gained by other countries are a threat to Australian sales to South Korea.

A trade accord between the US and South Korea is waiting for lawmaker approval in both countries, while Seoul is finalising the terms of another deal with the EU.