Free Trade Flourishing
The Federation of Korean Industries announced on Oct. 2 that Korea’s exports to Australia increased by 15.6 percent between Jan. and Aug. this year in the wake of the implementation of the FTA between the two countries in Dec. 2014. The rate of increase is highly significant in that Korea’s overall exports decreased 6.3 percent during the same period.
Under the circumstances, Korean products’ ratio in the Australian market rose from 4.29 percent to 5.95 percent between last year and the first half of this year. The positive effects of the Korea-Australia FTA is likely to become stronger, as 96 percent of the amount of exports from Korea to Australia is slated to benefit from zero tariffs after the tariff reduction scheduled for next year.
In the meantime, POSCO Chairman Kwon Oh-joon, who is the head of the Korea-Australia Business Council, attended and delivered an opening speech at the 36th meeting of the council held in Sydney. “We need to make better use of the bilateral FTA in order to overcome low growth and bring the two countries’ complementary relationship to the next level,” he said, adding, “Australia’s advanced service industry and its efforts for the development of science and technology have much to do with the Korean government’s policy for creative economy, and I suggest we should strengthen our cooperation in finance, construction, and technology in the framework of the Asian Infrastructure Investment Bank.”