Korea-Australia Free Trade Agreement brings new opportunities for SMEs

Minister for Small Business Bruce Billson is encouraging SME business owners to look at export opportunities to South Korea, with the Korea-Australia Free Trade Agreement coming into effect today.

Minister for Small Business Bruce Billson is encouraging SME business owners to look at export opportunities to South Korea, with the Korea-Australia Free Trade Agreement coming into effect today.

In a statement released today, Minister Billson said the milestone Korea-Australia Free Trade Agreement (KAFTA) opens the door to millions of more prospective customers, and advance the prospects of Australia’s small businesses and family enterprises.

“KAFTA eliminates almost all tariff barriers into our third largest export market,” he said. “From today, 84 per cent of our goods exports to Korea, by value, enter duty free. A range of products, from wheat to pharmaceuticals and wine to automotive parts, have today received a major competitive boost.

“This figure will grow to nearly 100 per cent as Korea removes its tariffs on other Australian goods over time. The first tariff cut is today. Future cuts are scheduled to occur on 1 January in coming years – including New Year’s Day 2015, just three weeks from now.”

Billson adds that KAFTA is not just about removing tariffs, as Australian services providers will also get new access into South Korea in legal, accounting and telecommunications services. 

“I urge all Australians involved in small business and family enterprise to not underestimate the value of this outcome for the SME sector and the opportunities it unlocks.

“Through KAFTA and other recent FTAs with Japan and China, the Abbott Government is creating opportunities for SMEs to achieve growth through export and economies of scale that cannot be achieved from the domestic market alone.” 

Read more on the KAFTA.

 

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