The Korea–Australia Free Trade Agreement (KAFTA) has had great results since its introduction, and the third round of tariff cuts introduced on January 1, are delivering even stronger export returns to Australian farmers. Agriculture Minister Barnaby Joyce says the tariff cuts result in increased returns for produce such as cherries, Brussels sprouts, nuts and grapes.
The elimination of the 24 per cent tariff on cherries resulted in exports worth $3.5 million in 2014-15.
“The third round of tariff cuts will be particularly beneficial to a number of Australian agricultural exports to Korea and will allow producers and exporters to continue to build their commercial relationships in Korea,” Mr Joyce said.
“Nuts are becoming an important export commodity to Korea, worth over $10 million in 2014-15. Almonds in shell will have the current tariff of 6.4 per cent reduced to 5.6 per cent, and macadamia nuts will have the current tariff of 18 per cent reduced to 12 per cent.
“Table grapes will have the current tariff (for our export season) of 18 per cent reduced to 12 per cent.
“Exports of Brussels sprouts will also become more commercially attractive with tariffs being lowered to 15.4 per cent from the current 19.2 per cent. This is down from 27 per cent pre-KAFTA.”
Mr Joyce said KAFTA had provided welcome increases in export revenue for many farmers.
“Exports of a whole raft of products have risen strongly — for example, Brussels sprouts and fresh cherries which have both increased by nearly 5000 per cent, albeit from a low base. The elimination of the 24 per cent tariff on cherries has resulted in exports worth $3.5 million in 2014-15.
"Fresh navel oranges had also seen strong growth, with exports increasing almost 700 per cent to $486,000 in 2014-15, as well as almonds which are up over 400 per cent to $0.5 million.
“We’ve got a strong track record of delivering better access to overseas markets for Australian exporters with our recently signed FTAs and trade partnerships across Asia and the Pacific, and we’re now working on similar agreements with India and the EU," he concluded.
Source: goodfruitandvegetables.com.au