Australia to gain $US22 billion from FTA with Korea
Farm Online 22/04/2008
Australia to gain $US22 billion from FTA with Korea
Federal Trade Minister, Simon Crean, has welcomed the key findings of a non-government study into the feasibility of a free trade agreement between Australia and the Republic of Korea (ROK).
The joint non-government report finds that an Australia-Korea FTA could boost Australia’s GDP by up to $US22.7 billion and Korea’s GDP by up to $US29.6 billion in the period 2007-2020.
"“The study clearly shows there is scope for a high-quality Australia-Korea free trade agreement that comprehensively liberalises two-way trade in goods and services as well as investment," Mr Crean says.
"This joint study is a helpful contribution to our discussions with Korea on commencing FTA negotiations.
"We are committed to pushing ahead with FTA efforts at the same time as we press for the strongest possible outcome in the Doha Round of world trade talks."
Officials from Australia and the ROK will meet in Seoul today to discuss the report and discuss next steps towards an agreement.
The study on the FTA was done by Melbourne-based trade consultancy, ITS Global, and the Korea Institute for International Economic Policy.
Mr Crean emphasises that the study is not an official report and that the Australian and Korean governments do not necessarily agree with all of its conclusions.
Mr Crean notes that the Republic of Korea is Australia’s third largest merchandise export market and Australia is a key trading partner of the ROK.
"Two-way trade in goods and services between our two countries was worth $A21 billion in 2006-07. This report shows that we can enhance our bilateral trade and investment relationship further through an FTA that comprehensively liberalises bilateral goods and services trade and investment.
"I note the study suggests particular gains from cuts to Korean agricultural trade barriers.
"Australia and the ROK have secured FTAs with a number of countries. It is important that we begin negotiations with each other, to ensure our bilateral trade and investment continues to grow and is not disadvantaged."
* The report is available at: www.dfat.gov.au/geo/rok/fta/
