Korea is already one of Australia's biggest markets for beef, dairy and sugar. Photo / Hawke's Bay Today
Korea is already one of Australia's biggest markets for beef, dairy and sugar. Photo / Hawke's Bay Today
Australian farmers are pinning their hopes on new Trade Minister Craig Emerson to snag a bilateral agreement with South Korea that could earn Australia about A$800 million ($1 billion) in 20 years.
National Farmers Federation president David Crombie told the organisation's trade committee meeting in Canberra yesterday that an Australia-Koreadeal should be secured by early next year.
Korea has agreements with Australia's two biggest competitors, the United States and the European Union, which could sideline Australian farm exports once ratified.
Crombie referred to a Centre for International Economics report that showed the US-Korea deal would slash Australia's agricultural and food exports into Korea by A$800 million by 2030.
The report estimates an Australia-Korea trade agreement would see the country's agriculture and food exports into the Korean market increase by 53.3 per cent by 2030, or about A$700 million, even if the US deal is ratified.
Crombie said Australia must act fast. "It's an all-or-nothing proposition," he said. "If we can clinch a Korean deal, the Australian economy will be A$700 million in front. If not, we're A$800 million in the hole."
Korea is already one of Australia's biggest markets for beef, dairy and sugar. Crombie said a deal would not only grow the Korean market but be a win for Korea as Australian exports do not have home-grown competition.
