The Australian Horticultural Exporters’ Association (AHEA) has identified increased trade potential for the country’s citrus, mango, table grape and potato suppliers, following the implementation of a free trade agreement with South Korea last Friday (12 December).
The FTA has immediately eliminated customs duties on 84 per cent of Australian exports into the North East Asian nation, while 99.8 per cent of products will be tariff-free upon full implementation of the trade pact.
AHEA executive director Michelle Christoe said South Korea imported over 1.6m tonnes of fresh produce last year with citrus (71 per cent) and table grapes (25 per cent) making up the majority of shipments.
The South Korean market contributed just A$6.8m (US$5.6m) to Australia’s A$790m (US$650m) fresh produce trade over the 12-months to June 2014, according to figures released by the Australian Bureau of Statistics. However, Christoe said the FTA, known commonly as KAFTA, would shore-up Australia’s competitiveness in what she described as potentially major export market.
“The launch of the Korean FTA provides the Australian horticulture industry with exciting opportunities to expand the volumes of fresh Australian products to Korea, particularly citrus, mangoes and potatoes,” Christoe explains. “Whilst technical market access issues still remain, we commend both governments in bringing together this timely reduction in tariffs.”
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