Australia and south korea trade relationship

Australia-Republic of Korea relationship

australia and south korea trade relationship

The relationship between Australia and South Korea has been mostly strategic, economic and normative interests in international relations. It is in agricultural exports that Australia might do well in Korea, and be able to related to Korea and Australia trade relationship and the FTA of both Korea and. The South Korea–Australia free trade agreement (KAFTA) has set a course for rapid growth in Australia's trade relationship with South Korea.

Last year it was 62 per cent. Advertisement This is a massive seven-fold increase sincenow boosted by a new free trade agreement. South Korea is at the heart of Australia's Northeast Asian economic and strategic interests.

Republic of Korea (South Korea)

It sits slap-bang between two of Australia's largest trading partners - China and Japan - and, like its neighbours, relies heavily on international trade for its economic wellbeing. If real military conflict were to break out between North Korea and the United States, South Korea's major industrial centres would suffer incalculable damage.

australia and south korea trade relationship

There would inevitably be a huge loss of life in South Korea, Northern China and Japan — all of which rely on strategic raw material imports and energy supplies from Australia. South Korea has enjoyed unbroken growth for almost 20 years and has consistently outperformed other advanced G20 economies. This is not only due to current ties between the two countries, but also because of South Korea's role in East Asian economic integration. The role played by its main companies in global value chains, as well as the increasingly important role of its economy in services and financial markets are both examples of this.

These industrial links help form the backbone of the whole East Asian economy.

australia and south korea trade relationship

A more sophisticated and proactive diplomacy in the region to protect those interests than deployed so far is urgent. Advertisement On security matters, diplomacy that merely echoes Mr Trump's calls for China to increase pressure on North Korea to curtail its ballistic missile and nuclear programs is only a start in pursuing Australia's national interests in a theatre in which almost half of its external economic assets are located.

AP Australia needs to articulate an approach to the North Korean problem that takes into account the interdependent interests of all key regional stakeholders. It carries exceptional growth opportunities for many sectors that were formerly heavily protected, or in which there was discrimination against Australian imports.

These include agriculture, horticulture and key markets in manufacturing, mining and services. Australia's agricultural exports to South Korea alone are projected to increase by 73 per cent by Like other advanced economies, South Korea faces a number of structural challenges, including a rapidly ageing populationheavy reliance on exports and rising household debt. But it is better-placed than most to deal with them. Its negotiation of more than 50 free trade agreements has nurtured a vigorous strategy of liberalisation and economic reform.

australia and south korea trade relationship

South Korea's economic relationship with Australia has grown and diversified. While iron ore and coal still account for around 60 per cent of Australian exports — resources which are core to South Korea's economic security — rapid growth in shipments of agriculture, and trade in services like tourism and education, has broadened the export basket.

By virtue of geography and economic influence, relations with the major powers — China, the United States, Japan and Russia — remain the most important foreign policy priorities for the ROK, after its relationship with the DPRK.

Over time, the ROK has actively sought to diversify its diplomatic and trade links and has made considerable efforts to ensure itself a place in the international community commensurate with its economic status.

South Korea bets big on India

Bilateral relations Australia and the ROK are natural partners as democracies with complementary economies and common strategic interests. The first recorded contact between Australia and Korea took place inwhen Australian missionaries landed at Busan. Australian photographer George Rose travelled the length of the peninsula in and photographed the country and people.

australia and south korea trade relationship

Today, his images of everyday Korean life, clothing and customs form a valuable part of Korea's documentary history. Approximately 17, Australian troops served under UN command and Australians died during the Korean War. Australia and the ROK established full diplomatic relations in In JuneAustralia opened an Embassy in Seoul. Since then, strong economic, political and strategic connections have grown between Australia and the ROK.

People-to-people links, supported by a large and growing Australian Korean community, are strong and growing, and the bilateral trade and investment relationship is complementary, longstanding and robust. Marking the 50th anniversary of diplomatic relations, the governments of Australia and the ROK designated as a "Year of Friendship" and links were further enhanced in by Australia's participation in the World Expo in Yeosu on the ROK's south coast. This Memorandum provides a framework for greater cooperation on development assistance.

Both countries are working together to explore ways to develop practical collaboration, with a focus on the Asia-Pacific and strengthened development effectiveness. Security cooperation Australia and the ROK share key security interests in North Asia and the Asia-Pacific region, with peace and stability on the Korean Peninsula critical to the economic performance and security of both countries.

Both support a nuclear-free Korean Peninsula and regard the continued commitment of the United States to the Indo-Pacific as critical to stability and prosperity in the region. Our security and defence ties are expanding: The ministers affirmed the strength of the relationship and commited to further enhancing bilateral cooperation across a range of areas.

At this meeting, the ministers agreed a Defence and Security Blueprint that implements an agreed Vision Statement.

australia and south korea trade relationship

The Blueprint lists areas for practical security and defence cooperation between Australia and the ROK, including increased patterns of bilateral and joint exercises.

Economic overview The ROK has made remarkable economic progress in the last half-century.

Market profile – Republic of Korea – For Australian exporters - Austrade

When the Japanese occupation ended inKorea was impoverished and its economy largely based around agriculture. Much of its infrastructure was destroyed during the Korean War, which also had an enormous human cost. Sustained high economic growth since the s, supported by significant US investment, has enabled the ROK's transformation into a highly industrialised and internationally competitive economy.

The ROK was one of the few OECD countries besides Australia to record growth and not enter into technical recession after the global financial crisis of Factors supporting this included the rapid devaluation of the Korean won, providing exporters with a significant buffer, and a series of government fiscal stimulus packages. The ROK economy continues to grow relatively strongly, mainly owing to export demand accounting for more than 50 per cent of GDPwith average annual growth of2. Trade and investment Trade Australia's trade relationship with the ROK developed rapidly during the s, as the ROK pursued industrialisation requiring large amounts of raw materials.

The two countries have a complementary trade relationship, with Australia providing raw materials, manufactured products and food to the ROK, and importing products such as cars, telecommunications equipment and computers, as well as refined petroleum.

Australia–South Korea relations - Wikipedia

The ROK is Australia's fourth-largest overall trading partner. As well as coal iron ore and aluminium, the ROK remains an important market for Australian beef, sugar, medicaments and wheat. The primary imports from the ROK in were refined petroleum, passenger motor vehicles, and civil engineering equipment and parts.

Investment commitments in the agreement protect and enhance investment in both directions. Their annual joint meeting allows members to exchange views and expand private sector links between the countries. This investment is beginning to diversify into other areas such as tourism. Korea is the 16th-largest destination for Australia's foreign investment abroad.