Industries
to Raise Expectations for the Korea-Australia FTA
-KITA’s FTA Center held the Korea-Australia FTA Seminar-
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While the officially
signed Korea-Australia FTA is attracting Korean industries’ attention to the
Australian market, the Korea International Trade Association’s FTA Information
and Business Support Center (Chief, An Hyun-ho, Executive Vice Chairman of
KITA) and the Australian Chamber of Commerce in Korea co-hosted “The
Korea-Australia FTA Seminar” at the Trade Tower in Samsung-Dong on August, 25.
The seminar provided
various information to help take advantage of the Korea-Australia FTA including
main contents of the pact and its impact on each industry, the promising export
items in accordance with the agreement between two countries, the practical
affairs of the pact, promising import products as well as information about
investment in Australia, and the benefits of having business with Australia.
When the Korea-Australia
FTA officially enters into force all tariffs on major export items to Australia
such as cars, heat exchangers, pumps and TVs will be eliminated within 5 years.
In addition, the cost saving effects are expected as the import unit
prices of iron ore and coal will be dropped.
An official at the IIT
of KITA insisted “After the FTA takes into effect, Korea and Australia could
expect the bilateral trade expansion as they have complementary industrial
structures to each other. However, since the Australian government is actively
promoting the FTA with China and Japan lately, Korea needs to implement the
early ratification and effectuation in order to maximize the first mover
advantage in the Australian market.”
Kim Tae-Nyen, the
Executive Director of Korea Automobile Manufacturers Association (KAMA,) said
“Korea’s exports of cars account for 25 percent of the total exports to
Australia. Therefore, Korea should attempt to gain the early edge of the
market.” He particularly stressed “Korea needs to take a fast action not to
allow the Japan-Australia EPA, which was signed on July, 8, to come into effect
earlier than the Korea-Australia FTA.”
An official at the FTA
Information and Business Support Center said “Since Australia is Korea’s 6th
largest trading partner, Korea is expecting the significant economic
cooperation between two countries via the Korea-Australia FTA. This seminar
provided a good guidance for Korean companies that want to enter into the
Australian domestic market and the industries expressed the converged hope for
the early effectuation of Korea-Australia FTA.”
