While many Australian resources and energy products already entered Korea duty free prior to KAFTA, Korea previously applied tariffs of up to 8 per cent on a range of resources and up to 13 per cent on manufactured products.
From KAFTA’s entry into force on 12 December 2014:
- 88 per cent of Australia’s manufactures, resources and energy exports to Korea were 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 been eliminated;
- 86 per cent of Korea’s manufacturing, resources and energy exports to Australia were duty free, with Australia phasing out remaining tariffs for the most import-sensitive manufacturing products progressively by 1 January 2021.
As a result of KAFTA, all tariffs on Australia’s pharmaceutical exports to Korea (including vitamins) have now been eliminated. Prior to elimination, Korea’s tariffs on pharmaceutical products ranged up to 8 per cent. Almost 90 per cent were eliminated on entry into force and the remainder phased out on 1 January 2016.