Australia and South Korea have a strong economic partnership, and many people wonder whether they have a free trade agreement. The answer is yes, there is a free trade agreement (FTA) between the two countries. The agreement is officially known as the Korea-Australia Free Trade Agreement (KAFTA).

The KAFTA was signed on April 8, 2014, and came into effect on December 12, 2014. It is a comprehensive FTA that covers trade in goods, services, and investment. It is the most significant bilateral trade agreement that Australia has signed since the Australia-United States Free Trade Agreement in 2005.

The KAFTA has several key benefits for both countries. For Australia, the agreement provides improved access to the Korean market, which is the fourth largest economy in Asia and the 11th largest in the world. Korean tariffs on Australian exports were immediately eliminated or reduced upon the agreement`s implementation, giving Australian businesses a competitive edge.

The agreement also provides benefits for Korean businesses. Korean companies now have greater access to the Australian market, which is the world`s 14th largest economy. The agreement has led to increased trade in many areas, including beef, wine, wheat, and automotive parts.

In addition to trade in goods, the KAFTA also covers trade in services. The agreement provides for improved market access and greater regulatory certainty for service suppliers in both countries. This includes areas such as financial services, education, and telecommunications.

The KAFTA also includes provisions for investment. The agreement encourages and protects investment between the two countries, providing greater certainty and transparency for investors.

Overall, the KAFTA has been a positive development for both Australia and South Korea. The agreement has led to increased trade and investment, providing benefits for businesses and consumers in both countries. It has also strengthened the economic partnership between Australia and South Korea, cementing their position as important trading partners in the Asia-Pacific region.