Korea relationship shows when trade flows, so do benefits

This week – to celebrate the tenth anniversary of Australia’s trade agreement with the Republic of Korea – we welcome the Republic of Korea’s Minister for Trade Cheong In-kyo to Perth, along with some of both Australia and Korea’s most influential industry leaders.

When we were asked where we wanted to mark the occasion – the obvious answer was Western Australia.

Not only has the Republic of Korea been an important and long-term friend of Australia, but our resources have provided the building blocks for Korean industry for decades.

Almost half of our nation’s exports of minerals, petroleum, agricultural products, and machinery parts to South Korea come from Western Australia.

Meanwhile, South Korea has nearly doubled its import goods from WA over the last decade.

To give a sense of the significance of this relationship; one single Korean steel maker, POSCO, purchases more than $7 billion worth of Australian resources each year, making it the largest single private customer of Australian exports.

Under our trade agreement, more than 99 per cent of Australian exports to the Republic of Korea are eligible for duty-free access, which puts Aussie businesses and exporters ahead of their global competitors.

When trade flows freely, the benefits are felt across virtually all aspects of everyday life. More trade means more well-paying jobs, more national income, more opportunities for business and ultimately a lower cost of living. Our trade agreement with Korea is a testament to this, supporting almost 165,000 Aussie jobs and contributing approximately $51 billion to our economy.

Talks this week in Perth will focus on expanding trade and investment opportunities in both traditional and emerging sectors, like critical minerals, green metals, hydrogen, and of course, the Albanese Government’s $22.7 billion Future Made in Australia agenda.

Because a Future Made in Australia means even more Aussie products into these global markets, and secure jobs in WA.

To date, Australia’s world-class resources have been at the centre of our economic relationship with the Republic of Korea – we are the largest supplier to Korea of LNG, coal and iron ore.

But this success doesn’t happen by chance. The task of our government is to continue promoting Australian businesses overseas, building on the success of these agreements, and delivering for powerhouse states like WA.

As both countries take ambitious climate action and look to the opportunities the energy transition provides, Australia is firmly committed to a future where we remain a long-term energy and resources partner for the Republic of Korea.

Published in The West Australian on Tuesday 3 September, 2024