Korea Australia Free Trade Agreement (KAFTA)
Korea is a familar country to many Australians, and a great place to look for new suppliers, with unique products. We know the popular products imports like Hyundai cars and Samsung smart phones, but what about the smaller products that you can import to Australia? What benefits will this FTA (Free Trade Agreement) with Korea bring to Australian importers?
What does the KAFTA Mean for Importers?
Despite the name, it doesn’t actually mean ‘free trade’; it means both countries have sat down and negotiated the reduction of a range of import duties and market barriers. Once upon a time, all sorts of crazy taxes and implied barriers would prevent you from importing and exporting product freely.
These still exist in some markets, but increasingly these FTA’s break down those barriers and they seem to work. The Thailand-Australia Free Trade Agreement (TAFTA) supposedly was responsible for a large increase in imports (not sure about exports), from Thailand to Australia. Products that were not profitable to import prior to the FTA, suddenly became viable. So look in particular for large import duty movements, across many sectors.
How to Start Importing from Korea with the new KAFTA (Korea Australia Free Trade Agreement)?
- First make sure the product is profitable and feasible – landed cost and product to market
- Check new import duty reductions here
- We can advise you on certificates and processes once you become a member
Why Import from Korea?
Korean industry is diverse, relatively high technology and mostly focused on other export markets. Australia is not always a priority because we have a small population and buying base. So not every exportable product from Korea, finds its way to Australia. Products that are exported to our comparable markets from Korea – the US and EU, should be the first ones you might look to bring to Australia.
International Trade Connections between Korea and Australia
Cultural ties between Australia and Korea have run deeply for over 50 years, and continue strongly today with Korea being a major buyer of Australia agriculture and minerals, and of course education and tourism. Australia is a favoured travel and study destination for Koreans, so it is familiar territory. On the other hand, there are not as many Australians with solid in-market experience in Korea.
What to Import from Korea?
Take a look at tradekorea, an online supplier directory supported by the Korea International Trade Association.
Learn how to import and launch product from Korea to Australia?
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