South Korea FTA to start in nine days

Australia's free trade deal with South Korea comes into force in nine days, bringing a double dose of tariff cuts to some exporters.

Australian exporters are set for a double dose of tariff cuts as the free trade deal with South Korea comes into force in nine days.

Korea's national assembly gave the nod to the agreement on Tuesday night and on Wednesday the Australian ambassador to Korea completed the final paperwork exchange with the government.

As a result, some exporters will benefit from an immediate tariff cut on December 12, followed by a second cut on January 1, 2015.

Trade Minister Andrew Robb says it will shore up the nation's competitiveness in Australia's third largest export market.

Beef exporters in particular had been pinning their hopes on the deal's completion by the end of the year so they stood a better chance against US exports.

Any delay would have kept the tariff differential at eight per cent rather than 5.3 per cent, worth 20 cents a kilo.

Mr Robb said there would be increased export opportunities for wheat, sugar, dairy, wine, horticulture, seafood, automotive suppliers, resources and energy industries.

The Abbott government has struck a trifecta of free trade agreements struck this year - also concluding deals with China and Japan.

Under the Korean deal, tariffs will be eliminated on 84 per cent of Korea's imports from Australia immediately.

But on full implementation 99.8 per cent of Australian exports will enter Korea duty free.


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