April 11, 2008

Australia eyes FTA with South Korea

Australia is aiming for the commencement of a free trade agreement with South Korea to boost the competitiveness of its beef industry.

According to David Palmer, Meat and Livestock Australia's managing director, the FTA with Korea is essential for the Australian beef industry, especially in light of the formalisation US-Korea FTA.

Under the proposed US-Korea FTA, the tariff on US beef imported into Korea will be cut from 40 percent to zero over 15 years.

A 40 percent tariff is imposed on all beef imported into Korea, including that from Australia.

Before BSE was discovered in a US herd four years ago, the US was the largest exporter of beef to Korea, but Australia has since then taken the position.

There have been encouraging signals from both the Korean and Australian governments regarding the commencement of a possible negotiation, said Palmer.

Australia's Federal Minister for Agriculture, Tony Burke, is in currently on a two-day visit to Korea.