Quick Guide: Key Agricultural Products Outcomes
On full implementation of the Korea-Australia Free Trade Agreement, 98 per cent of Australia’s agricultural exports to Korea will face no tariff. Half of Australia’s exports will enter duty free on entry into force of the Agreement. A selection of key outcomes is listed below.
Beef: Korea will eliminate its 40 per cent tariff on beef and 18 per cent tariff on bovine offal progressively over 15 years.
Sugar: Korea will abolish its 3 per cent tariff on raw sugar on entry into force.
Wheat: Korea will eliminate its 1.8 per cent tariff on wheat and 8 per cent tariff on wheat gluten on entry into force.
Dairy: High tariffs of 36 per cent on cheese and 89 per cent on butter will be eliminated between 13 and 20 years. Australian dairy exporters will also benefit from growing duty free quotas for cheese, butter and infant formula. The cheese quota volume represents around two thirds of Australia’s cheese exports to Korea in 2013.
Lamb/goat/pork: Korea will eliminate its 22.5 per cent tariff on all sheep and goat meat over 10 years. Tariffs on key pork exports of 22.5 to 25 per cent will be eliminated in five to 15 years.
Wine: Korea will eliminate its 15 per cent tariff on Australian wine immediately on entry into force of the Agreement.
Horticulture: Many products, including priorities such as cherries, almonds and dried grapes, will enter Korea duty free on entry into force. These currently face tariffs of 8 to 24 per cent. Tariffs on other priorities such as macadamia nuts, fruit juices, mangoes, asparagus and lentils, ranging from 27 to 54 per cent, will be phased out over 3 to 10 years.Taking advantage of counter-seasonal production, high tariffs on potatoes for chipping (Australia’s largest horticultural export – current tariff 304 per cent), oranges (50 per cent), fresh table grapes (45 per cent), and mandarins (144 per cent) will be eliminated during our exporting seasons.
Malt and malting barley: Korea will provide a growing duty-free quota for malt and malting barley and eliminate high out-of-quota tariffs of 269 and 513 per cent over 15 years.
Seafood: Key products, such as southern bluefin tuna (current tariff 10 per cent) and rock lobsters (20 per cent) will enter duty free after three years.