Korea - Australia Free Trade Agreement
The Korea - Australia Free Trade Agreement aims to foster economic relations between the two signatory nations through the elimination of tariffs and customs duties on the trade of goods and services in accordance with the agreement.
The Agreement covers, among others, the elimination of tariffs for the following goods:
- Electric generation equipment
- Mechanical equipment including pumps, appliances, and other advanced machinery
- Electric motors, transformers, batteries, and capacitors
- Motor vehicles
- Mineral ore and processed products including graphite, manganese, copper, aluminum, and nickel
- Various products manufactured using above minerals and metals such as sheets, powders, bars, and plates
- Photovoltaic cells
The Agreement also includes rules of origin and local content provisions. Goods are counted as originating from each country if either they are wholly produced in the respective country or satisfies requirements specified for each good in the Agreement.
The Investment provisions of the Agreement forbids performance requirements that require, as a condition of investment, export quotas, domestic content quotas, technology transfer, and other non-tariff barriers. It also carries national treatment and most-favored nation treatment provisions that require investors from either Party to be treated equally to both domestic investors or those from any other nations.
However, it does allow either party to provide additional benefits or advantages tied to the following conditions:
- Location of production in its territory
- Supply of a specific service
- Training and employment of workers
- Construction or expansion of certain facilities
- R&D activities
It also does not prevent either party from taking temporary safeguard measures in the event of serious financial difficulties, threats, or other exceptional circumstances.
Want to know more about this policy ? Learn more (Korean)