Korea deal good for growers

THE Grains, beef and sheep industries have welcomed the new Australia-Korea free trade agreement.
GrainGrowers Chairman John Eastburn said the FTA is great news for Australia’s grains industry.
Mr Eastburn represented the Australian grains industry at the Cairns Group Farm Leaders trade discussions in Bali and he said the agreement is exciting for Australia and Korea.
“This agreement is fantastic news for Australian grain producers and Korean consumers,” Mr Eastburn said.
“It will level the playing field for Aussie grain producers who want to sell to Korea because they will no longer have to compete against farmers who benefit from a government-imposed tariff.
“In time we expect Korean consumers will find they are able to buy high quality Australian wheat at a more affordable price,” Mr Eastburn said.
GrainGrowers’ team of economists expect Australian producers will see the benefits of this agreement through the opportunity to export increased quantities to Korea and possibly receive higher prices.
For example, the removal of the tariff on Australian wheat imports to Korea would have meant an additional $USD14 million is available to be shared between consumers in Korea and Australian producers selling grains to that country.
The Australian beef and sheepmeat industries said the new FTA is critical for the future of the industry.
South Korea Taskforce spokesman Stephen Kelly said the deal sees the removal of the current 40 per cent tariff over 15 years and the phasing out of the 22.5 per cent sheepmeat tariffs over 10 years.
“This will potentially save the Australian beef industry $1.25 billion over the next 15 years,” Mr Kelly said.
“The agreement is extremely positive and will help secure the ongoing supply of Australian beef for Korean consumers in a highly competitive global protein market,” he said.
Federal Member Bruce Scott said key agricultural exports in his electorate of Maranoa will remain a top choice in South Korea.
“As part of the FTA, tariffs of up to 300 per cent will be eliminated on key agricultural exports such as beef, wheat, dairy, wine and horticulture, as well as resources, energy and manufactured goods,” Mr Scott said.
As part of a Federal Government delegation enquiry, Mr Scott travelled to the Republic of Korea during August 2012 to identify new markets and assist Australian companies to access existing and potential opportunities.
“We worked towards the FTA with South Korea because there was a need to ensure Australia cements its international awareness and loyalty to our brands to support farmers and their families,” he said.
“Today’s announcement is an absolute win for the Maranoa.
“The Republic of Korea is Australia’s third-largest goods export market and our fourth-largest trading partner.”