Peak industry body Citrus Australia is eyeing new opportunities for its members in the South Korean market, following the ratification a free trade agreement (KAFTA) between the two nations today (12 December).
The move has seen tariffs on Australian oranges drop from 50 per cent to 30 per cent immediately, with a further 5 per cent reduction to take place on 1 January 2015. Citrus Australia CEO Judith Damiani hoped this would encourage Australian exporters to take a “fresh look” at the South Korean market.
“Trade to South Korea has been erratic in the past 10 years with exporters having faced serious competitive pressures from other trading nations such as South Africa and Chile,” Damiani said. “The tariff reduction means we can offer a more competitive price point which will help expand Australia’s trade into South Korea.”
Damiani said South Korea had one of the most sophisticated retail sectors within the Asian region, with consumers showing a preference for sweet, high quality citrus.
“While the US has led the way in developing high Brix programmes into South Korea, Australian citrus is catching up and we now have similar technology that has already proved successful in Japan,” she said.
