Fact Sheet: Trade in Services
The Australia-Korea Free Trade Agreement (KAFTA) will provide Australian services exporters with the best treatment Korea has agreed with any trading partner, on par with its agreements with the United States and Europe. This includes new market access for suppliers of legal, accounting, and telecommunications services and guaranteed access across a broad range of other services.
Specific gains for services suppliers include:
- Australian law firms will have access for the first time to Korea’s legal consulting services market by being able to:
- establish representative offices in Korea upon entry-into-force;
- enter into cooperative agreements with Korean law firms within two years after entry-into-force and, within five years, establish joint venture law firms;
- hire local lawyers and deploy Australian lawyers more easily in Korea.
- Australian lawyers will also be permitted to advise on Australian and public international law as foreign legal consultants in Korea.
- Australian financial services providers will be able to supply specified financial services on a “cross-border” basis, enabling Australian suppliers to do business without the need to open a full commercial presence. This includes:
- investment advice and portfolio management services for investment funds;
- a range of insurance and insurance related services including risk assessment, actuarial and claims settlement services.
- Australian financial services providers will benefit from commitments which require Korea to allow Australian institutions to transfer data into and out of its territory, allowing for more efficient data processing in Australia.
- KAFTA provides for enhanced transparency around licensing of financial institutions and regulatory decision-making, as well as streamlined licensing procedures for Australian suppliers in Korea.
- Australian accountants (holders of Certified Practicing Accountant or Chartered Accountant qualifications) will be able for the first time to provide accountancy consultancy services relating to Australian or international tax or accounting law through offices in Korea and, within five years, be able to work and invest in Korean tax or accounting corporations. Continuing work on professional services and mutual recognition will aim to extend these benefits to holders of other Australian accounting qualifications over time.
- Australian telecommunications providers will be able to own up to 100 per cent of the voting shares of a facilities-based telecommunications service supplier in Korea within two years, and be licensed to provide public telecommunications services.
- KAFTA establishes strong disciplines to prevent anti-competitive conduct and ensure that major suppliers provide interconnection, resale of services, leased circuit services and co-location of equipment on reasonable, non-discriminatory terms and conditions.
- There are strong provisions on transparency and review for regulatory decisions.
- Australian education providers will benefit from new commitments which guarantee market access to Korea’s growing adult education sector.
- Australian environmental service providers will benefit from guaranteed access to Korea’s environmental services market (including waste management, waste water treatment, air pollution treatment, oil remediation and groundwater purification).
Film and television services
- The Australian film and television industry, in collaboration with the Korean industry, will be supported by an Audiovisual Co-production Annex that will enable wider distribution of their work in Korea and international markets.
- Australian engineers will benefit from guaranteed market access in Korea and from closer collaboration under KAFTA between Engineers Australia and its counterpart body in Korea, the Korean Professional Engineers Association (KPEA) via a Mutual Recognition Arrangement (MRA).
- The MRA will enhance professional recognition of Australian engineers in Korea and facilitate closer collaboration by engineers from both countries in international markets.
Other professional services
- A broad range of Australian professionals, including architects, landscape architects, surveyors, and urban planners will benefit under KAFTA from Korea’s commitments to guarantee existing market access.
- Australian professionals will benefit from ongoing work to enhance mutual recognition of professional qualifications. This will be initially focused on: engineering services; accounting services; architectural services; healthcare services provided by pharmacists and radiographers; and veterinary services
- An agreement by both countries for improving recognition of health professional qualifications over time, including for pharmacists and radiographers, is one example of this.
- Australian professionals will benefit from guaranteed visa access arrangements, including for their spouse and dependents, to enter and stay in Korea.