Australia's horticulture exports to South Korea have jumped by 230 per cent to A$25m since a free trade agreement came into force in December 2014, according to data analysed by Fresh Intelligence Consulting.
According to AsiaFruit, macadamia nuts were up 217 per cent to A$7.56m, and cherries were up from a small A$0.07m to A$3.25m.
For cherries, a 24 per cent tariff was eliminated when the free trade agreement came into force, while the 30 per cent tariff on macadamias fell to 18 per cent in 2015 and will be eliminated by 2018.
Exports of fresh oranges lifted from A$0.12m to A$1.17m (0.81m) by July and could rise much higher, as the season only started in June. The tariff on navel oranges dropped from 50 per cent to 25 per cent in 2015.
Australia’s table grape trade into the Asian nation lifted from A$0.02m to A$1.95m, as the tariff dropped from 45 per cent to 24 per cent. This complemented the first full season of quarantine access for Australian grapes into South Korea. However, table grapes delivered after 1 May each year will continue to attract the 45 per cent tariff.
According to Austrade, Korea is Australia’s third largest export market, ahead of India and the US. It is also Australia’s fourth largest two-way trading partner.
Korea is the 12th largest economy in the world and the fourth largest in Asia, and the country’s economic growth is projected to accelerate from 3.7 per cent in 2014 to four per cent in 2015, one of the highest growth rates of all advanced economies.
Austrade says there are major prospects for Australian firms to supply Korea with the goods and services it requires during this time of significant change.
Under the Korea-Australia Free Trade Agreement (KAFTA), tariffs have been eliminated on 84 per cent of Korea’s imports (by value) from Australia.
On full implementation of KAFTA, 99.8 per cent of Australian exports will enter Korea duty free.
The Korean food market is rapidly evolving as a result of changing consumer tastes and expanding distribution channels.
