Based on the discussion in the previous
chapters, the following table shows for each industry sector the relative
importance of the key cross-sectoral issues that have arisen in the research
for this report.

• Note: The number of Xs reflects the relative
  importance of each issue ranging from apparently no importance where there is
  no X to very important where there are five Xs.

6.2. General
Initiative

This study has identified a number of
initiatives that could be undertaken to strengthen the economic partnership
between Australia and Korea. These are brought together in the following
section.

Most of these initiatives are quite specific
and relate to issues of importance to the more technology intensive sectors,
e.g. intellectual property, standards and compliance, technology workshops and
clusters, a cooperative agreement on education and training, etc.

While it would be possible to pursue these
initiatives separately, the opportunity could be taken to bring them under the
umbrella of an overarching economic framework agreement between Australia and
Korea.

There are already a number of quite specific
economic agreements/memoranda of understanding between Australia and Korea at
the government level as well as at the industry level. At the government level
these include agreements/MOU on trade, double tax, science and technology,
customs, quarantine, etc.

The Agreement on the Development of Trade
and Economic Relations between Australia and Korea was signed in 1975. It would
be opportune to develop a new agreement that reflects contemporary and future
realities. The various initiatives suggested in this report could be brought
under a new agreement such as a Trade and Investment Facilitation Agreement
(TIFA) to allow for consistency in their treatment.

A TIFA can be as broad and comprehensive as
the parties wish it to be – it can be viewed as an umbrella agreement enabling
the parties to include sectoral and cross-cutting issues that they both agree
would boost the economic links between the two parties. Because of its
"framework" nature, there can be subsidiary agreements under the
umbrella of a TIFA; new agreements can be added as new areas of cooperation are
developed.

A TIFA would not involve border
discrimination in trade and can be negotiated in a way that does not preclude
other economies from signing on to the agreement – as a whole or in part.

Economic sectors that might be included in a
TIFA are:

• Information
  and Communications Technology
• Biotechnology
• Environment
  Technology
• Education
  and Training
• Infrastructure
• Other
  services (e.g. banking and finance, business services)

Cross-sectoral issues that might be included
in a TIFA are:

• Standards
  and regulatory harmonisation
• Quarantine
• Customs
• E-commerce
• Intellectual
  property rights
• Investment
  protection guidelines
• Access
  by professionals between Australia and Korea

The adoption of such an approach reflects
the situation where the economic relationship between Australia and Korea has
moved beyond trade to encompass other economic relations such as investment and
technology development.

6.3. Specific
Initiatives

The following conclusion was reached in
regard to agriculture and food/minerals and energy:

Initiatives could be taken by the Government
to promote closer linkages between Korean and Australian participants in the
minerals and energy and agriculture and food sectors by way of e-commerce,
closer investment linkages, training in Australian food standards and
conformance systems, and person to person contacts.

The following conclusion was reached in
regard to manufactures:

Initiatives can be taken by the Government
to facilitate stronger linkages between Australia and Korea in ETMs, for
example:

• Examining
  the possibility of a bilateral arrangement between Australia and Korea where
  the Governments would undertake to try and harmonise their approach to the
  implementation of intellectual property protection. The implementation could
  include a Code of Practice and possibly a joint forum that would consider
  tangible issues raised by Australian and Korean firms about infringements of
  their intellectual property rights.
• While
  there were mixed views among Australian industry about the benefits of Mutual
  Recognition Agreements (MRAs), there is support for mechanisms to be put in
  place that are similar to MRAs. These can be addressed on an
  industry-by-industry basis rather than across the board. In the communications
  equipment area, there is support for a bilateral arrangement between Australia
  and Korea that harmonises or at least moves towards a more common compliance
  regime for obtaining approvals for equipment in this industry sector.

The following conclusion was reached in
regard to technology:

Linkages need to be developed throughout the
industrial/commercial chain in the technology segments, including close links
with the education and training sector. There are some linkages through the
Australia-Korea Business Council and its Korean counterpart, but these linkages
are mainly in the traditional trade areas of minerals and agriculture. What is
needed are effective linkages in the newly emerging sectors. These sectors are
primarily in the technology intensive areas, but should be closely linked with
the education and training sector because of the role of that sector in
assisting the development of the Australian profile.

Workshops should be held in specific
technology segments that include people who are responsible for the
commercialisation and marketing of newly developed technologies. The workshops
can discuss issues such as –

• what
  is available in Korea and what are Korea's needs;
• what
  is available in Australia and what are Australia's needs;
• what
  are the strategic directions in Korea and Australia in the different segments
  of technology and in their commercialisation; and
• what
  are the needs and strategic directions of other countries in the Asia Pacific
  region such as Singapore as well as the major markets of China and Japan.

If the workshops in particular segments are
successful they could lead to the creation of a Korean/Australian
"cluster" in particular industry segments that would include in each
cluster:

• relevant
  firms from each country;
• relevant
  R&D agencies;
• education
  and training institutions;
• financial
  services institutions;
• legal
  services; and
• product
  development and marketing specialists.

Initially, the clusters do not need to be
created on a very formal basis. The major task is to get the participants
talking together and to be linked by some form of intranet. Some seed funding
may be needed to promote the clusters, for example, the Australia-Korea
Foundation could expand its activities in the technology sectors to include the
sponsoring of the workshops and clusters. If they are successful, they could be
developed into more formalised fora where the Governments of Korea and
Australia could also participate; this would allow joint industry/government
discussion of issues affecting the particular sector.

The following conclusions were reached in
regard to education and training services:

(i) a
coordinated, long-term strategy be adopted involving the Australian Government
and educational institutions to capture the attention of Korean Government and
educational decision makers as to the quality and relevance of the Australian
education and training system and products to the human resources development
needs of Korea.

(ii) a
Government to Government cooperative agreement be reached whereby Australia
agrees to provide advice to Korean authorities and institutions on developing
Korea's new human resources development system and introducing Australian
institutions that can provide the particular systems and courses that meet
Korea's needs.

(iii) There
is a need in Korea for many types of courses that can be provided by Australia.

(iv) The
use of scholarships and work placements be introduced for Korean postgraduate
students in Australia as a longer term means to raise the general profile of
Australian education and training among younger Koreans and to build a
counterweight to the usual attraction of postgraduate students to the USA.

(v) The
building of Australian alumni groups in Korea be supported.

(vi) The
education and training sector should work closely with other sectors,
especially those in the high technology sectors.

The following conclusion was reached in
regard to infrastructure and utilities:

There are many opportunities in these
sectors and Australian organisations are already winning business. The major
Government role is one of promoting the capabilities of Australia generally and
particular companies in these areas.

In relation to other services, there are
opportunities in professional services, particularly those related to the
modernisation and reform of Korea's infrastructure and utilities and as a
result of the reforms to the commercial structure of businesses in Korea.

< Cross
Sectoral Issues

Recommendations >

Local Date: Monday, 15-Sep-2014 13:52:29 EST

This page last modified: Thursday, 10-Feb-2011 10:12:36 EST