South Korea and Australia have agreed on a free trade deal to boost relations between the two countries.
Removal of tariffs
As part of their deal, tariffs will be removed on major Australian exports to South Korea such as agricultural products, energy, and resources.
South Korean companies in industries such as steel, textile, and car manufacturing will also benefit from the immediate removal of tariffs to boost their presence in Australia.
Negotiations for the deal started under Labor in March 2009. The trade was reportedly worth A$32 billion last year.
Australian Prime Minister Tony Abbott said the benefits of the deal would “start flowing immediately and will be long-lasting.”
The free trade agreement, however, still needs approval from the cabinet between the two countries.
One of the industries that is likely to benefit the most from the deal is Australia’s beef exports. The National Farmers’ Federation says the agreement will provide millions of dollars in export value to farmers.