July 21, 2022
Australia sees beef export opportunity to South Korea
Meat and Livestock Australia (MLA) has identified an opportunity to expand its exports of Australian beef to South Korea, following the South Korea's imposed suspension on meat import tariffs, ILM reported.
Yoon Suk-Yeol, President of South Korea, announced that import tariffs for 100,000 tonnes of imported beef is suspended from 20 July until the end of this year.
The US now has lower tariff rates than Australia, according to MLA, so the tariff suspension creates a huge potential for Australian exporters, particularly given that South Korea was Australia's second-largest beef export market in 2021, with a growth rate of 5% year over year.
Australia currently has a 16% duty on exports to South Korea whereas the US has a 10.6% tariff. However, other exporters, like the South American trading bloc Mercosur, are subject to a 40% levy.
The tariff suspension from South Korea is part of an effort to tackle the country's rising inflation rate, which is now at 6% while the Korean Won is depreciating against the US Dollar.