Australia and South Korea have been encouraged to pursue an umbrella agreement such as a Trade and Investment Facilitation Agreement (TIFA) to strengthen their economic partnership, Trade Minister Mark Vaile said today.

Launching a new study commissioned by the Australia-Korea Foundation: Australia-Korea: Strengthened Economic Partnership, Mr Vaile said economic reform and deregulation in both countries were opening up significant business opportunities, particularly in public infrastructure development, IT broadband access and technology-based services.

"What this study shows is that there are emerging new fields for strengthening the economic relationship," Mr Vaile said.

"The study highlights where government and private sector cooperation in information and communications technologies (ICT), biotechnology, environmental technology, education and training could lead to better commercial outcomes."

"Companies, particularly those in business services, venture capital and IT delivery, would be competitive in Korea as demand for new-economy services expanded.

"Australia is a pioneer in new models of private sector project finance of investment in infrastructure services and export of these skills should benefit both countries.

"The study makes some innovative recommendations, such as closer public/private sector linkages in technology development; a bilateral arrangement on the implementation of intellectual property protection; and a sector-by-sector approach to common standards for traded products.

"The Government will investigate ways to implement the recommendations in the study, including the idea of an umbrella bilateral agreement to enhance trade and investment."

Korea is Australia's fourth largest trading partner and total bilateral trade currently stands at $ 13.8 billion.  Minerals and energy products are the cornerstone of the relationship although elaborately transformed manufactures, particularly automotive components, have become important in recent years.

Australia-Korea: Strengthened Economic Partnership was prepared by a consortium led by Duesburys Strategic Connections which includes Maxwell and Druce International Pty Ltd and Tasman Asia Pacific.

• Background information on the Australia Korea Foundation