Australia And Korea Begin Free Trade Agreement Preparatory Talks

Australia will embark on a new era of economic cooperation with the Republic of Korea this week with the start of preparatory talks on the negotiation of a free trade agreement (FTA). Prime Minister Rudd and his Korean counterpart, President Lee Myung-bak, agreed to start preparatory talks during the Prime Minister’s visit to Seoul in August.

The talks are being hosted by the Korean Ministry of Foreign Affairs and Trade in Seoul from 13-15 October 2008.

“Korea is Australia’s sixth largest trading partner, but the full potential of the economic relationship has not been realized.  The Rudd Government is committed to strengthening and broadening our economic engagement with Korea, and the talks this week will be an important part in developing this relationship.” said Mr Crean.

“These preparatory talks represent an important step towards ensuring that Australian exporters maximize their opportunities in the Korean market, particularly at a time when Korea’s other major trading partners such as the United States and the European Union are seeking improved access through free trade agreements.”

Mr Crean pointed out that while energy, minerals and metals accounted for around two-thirds of Australian merchandise exports to Korea, Korea was also an important market for other Australian exports including beef, education and tourism services.

Korea is Australia’s fourth-largest export market with goods and services exports of $15.3bn in 2007.  It is our sixth-largest trading partner overall, with total two-way trade of $21.8bn in 2007

A non-government study released in April 2008 concluded that a bilateral FTA would facilitate a stronger trade and investment relationship and lead to stronger economic growth to the benefit of both countries.

Source: AUSTRALIAN MINISTER FOR TRADE

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