Australia-Korea Free Trade Agreement (FTA)
Korea is Australia’s third largest export destination for Australian beef, capturing 13% of Australia’s global beef export volume and generating $750 million in returns to the Australian red meat industry. However, the market has come under competition pressure in recent times.
Progressing an FTA with South Korea is a top priority for the beef industry and Cattle Council is working to ensure that every opportunity is captured to remain competitive in this market.
The US and Korea have already concluded FTA negotiations; however, this is yet to be ratified by both countries’ respective parliaments. Once ratified, this agreement will see the 40% tariff on US beef being reduced to zero over 15 years. Securing at least import parity, if not better, for Australian beef in the Korean market will remain a critical focus for the Cattle Council.
Earlier in 2010, President Greg Brown and CEO David Inall of Cattle Council travelled to Seoul with the objective of progressing trade discussions with Korean officials as well as meeting first hand with key beef importers and retailers. Cattle Council will continue to develop its relationship with the Hanwoo Association, with the aim of increased cooperation and growing the total demand for beef in Korea for the benefit of beef producers in both countries.
Cattle Council is hopeful that the FTA will be concluded in the near future.
