Australia and South Korea Close to Trade Deal

Australia and South Korea have agreed on a free trade deal in an attempt to boost trade between the two countries.

As part of the deal, tariffs on key Australian exports to South Korea such as agricultural products, energy and resources will be eliminated.

It is also likely to help South Korean firms in sectors such as steel, textile and car manufacturing to boost their presence in Australia.

Trade between the two nations was worth A$32bn ($29bn; £18bn) in 2012.

Australian Prime Minister Tony Abbott said the benefits of the free trade agreement would “start flowing immediately and will be long-lasting”.

“Independent modelling shows the agreement would be worth A$5bn between 2015 and 2030 and boost the economy by around A$650m annually after 15 years,” Mr Abbott was quoted as saying by the Australian Broadcast Corporation.

The deal still needs cabinet approval in Australia and South Korea.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza