Prime Minister Tony Abbott spoke on Friday regarding the support of the Minerals Council of Australia for the landmark Trade Agreement between Australia and South Korea.
According to the media release issued by the Minerals Council of Australia, The Prime Minister congratulated Trade Minister Andrew Robb and his team for successfully concluding this highly important deal.
Australia’s mineral resources sector is the country’s largest export earner accounting for 9% of total exports, with South Korea being the third largest export market.
According to the statement from Mitch Hooke, Chief Executive Officer of the Minerals Council of Australia, 2012-13 has seen Australian mineral exports to South Korea reach the $12.5 billion mark, with coal ($5.1 billion) and iron ore ($5 billion) topping the charts as the two largest exporters.
South Korea has proven time and time again to be one of Australia’s most reliable and valued partners in the resources sector and the conclusion of the Trade Agreement will only serve to strengthen the good business relations between the two countries.
The implementation of the agreement is expected to offer an immediate benefit for the Australian minerals industry through the elimination of tariffs across a number of commodities, including gold, cobalt and titanium dioxide.
The agreement also highlights the importance of open trade and investment to the future wellbeing of Australia.
Trade Minister Andrew Robb and his team have managed to secure an extremely important win for the exporters of Australia.
An article featured on ABC reveals that tariffs will also be eliminated on Australian agricultural exports to Korea such as dairy, wine, wheat, along with resources, energy and numerous manufactured products.
“The benefits of the FTA [free trade agreement] start flowing immediately and will be long-lasting,” Mr. Abbott said in a statement.
“Independent modelling shows the agreement would be worth $5 billion between 2015 and 2030 and boost the economy by around $650 million annually after 15 years.”