KAFTA industrial products outcomes

Before the Korea–Australia Free Trade Agreement entered into force in December 2014, Korea applied tariffs of up to 8 per cent on a range of resources and up to 13 per cent on manufactured products. Currently, 86 per cent of Korea’s manufacturing, resources and energy exports enter Australia duty-free, with all remaining tariffs to be phased out by 2023.

Eliminating tariffs on industrial products

While many Australian resources and energy products already entered Korea duty-free prior to the Korea–Australia Free Trade Agreement (KAFTA), Korea previously applied tariffs of up to 8 per cent on a range of resources, and tariffs of up to 13 per cent on manufactured products.

From entry into force in December 2014, under KAFTA:

  • 88 per cent of Australia’s manufacturing, resources and energy exports enter Korea duty-free, with Korea phasing out all remaining tariffs by 1 January 2023
  • tariffs on priority products for Australia, including liquefied natural gas (3 per cent), titanium dioxide (6.5 per cent), unwrought aluminium (1 to 3 per cent), automotive parts such as engines and gearboxes (8 per cent), and sea salt (1 per cent) have already been eliminated
  • 86 per cent of Korea’s manufacturing, resources and energy exports enter Australia duty-free, with Australia phasing out remaining tariffs for the most import-sensitive manufacturing products progressively by 1 January 2021.

All tariffs on Australia’s pharmaceutical exports to Korea (including vitamins) have now been eliminated. Almost 90 per cent were eliminated on entry into force, with the remainder phased out on 1 January 2016. Korea’s tariffs on pharmaceutical products previously ranged up to 8 per cent.

Last Updated: 17 October 2017

Contacts

Department of Foreign Affairs and Trade

Email: KoreaFTA@dfat.gov.au

Phone: +61 2 6261 1888

Mail:

Korea FTA Coordinator
Free Trade Agreement Division
Department of Foreign Affairs and Trade
RG Casey Building
John McEwen Crescent
Barton ACT 0221

Austrade

Information for new and existing exporters
www.austrade.gov.au | 13 28 78