Australia and Korea — The Background - Department of Foreign Affairs and Trade
Australia–Korea Free Trade Agreement · Australia New Zealand Closer Economic Relations Trade Agreement · Australia–United States. In , per-capita income was around 5 per cent that of the United States South Korea's economic relationship with Australia has grown and. Australia and Korea have had a strong trading relationship for many years. This relationship was enhanced in December with the entry.
Macquarie has Korean employees here. It arranged Korea's first private road infrastructure fund and operates joint ventures with a number of Korean banks. South Korean companies have prospered in Australia as our economic relationship has grown. LG has grown to become Australia's top electronics brand. Other brands such as Samsung, Hyundai, Kia and Daewoo are household names. Korea is developing a reputation in Australia for innovation and high technology.
The trade in services is becoming a major component of the relationship. Tourism and education were both in Australia's top ten exports to Korea in Australia has just placed third in the rankings of the world's top universities and Australian cities rate as the most livable in the world.
A recent global survey rates Australia 'the world's friendliest nation'. Australia's e-visa program has made travel to Australia easier for Koreans. Korean travel agents can apply for visas for their customers electronically. And our working holiday maker program allows young Korean travelers to work in Australia during their stay.
In line with the vitality of the economic relationship, political engagement between our countries is strong. Foreign Minister Ban Ki-moon and I have instituted annual foreign minister talks. We have annual trade minister talks. The Korean and Australian defence ministers have undertaken reciprocal visits this year. Engagement of this type is important to build the personal relationships that bind our countries closer together.
So the trading relationship is very strong. The political relationship is strong. But what is just as important is our ability to work together to advance our shared interests and values.
- Australia and Korea: Shared Interests, Shared Future
- Australia-Korea: Strengthened Economic Partnership
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Shared Global Interests Australia and Korea are both fully engaged in combating terrorism and countering the proliferation of weapons of mass destruction. I particularly commend Korea for its military participation in Iraq, Afghanistan and in East Timor from to Australia has been fully engaged in these military campaigns from the start. Dispatching troops overseas is always a politically difficult decision.
But Australia and Korea share the view that international security is an important international objective.
We have consistently demonstrated our willingness to shoulder responsibility for global security. Likewise, we are both firmly committed to the global trading regime. Our interests in the WTO do not necessarily coincide, but we both recognise the importance of a credible outcome to the Hong Kong Ministerial Conference in mid-December.
Time is running out. The success of the Round hinges on whether the EU, and others such as the G10, can deliver more on agriculture. Specifically, the negotiations need to deliver on our shared mandate of substantial improvement in market access. For the Round to move forward in the other crucial areas of non-agricultural market access and services, the impasse on agriculture must be resolved urgently.
Australia and Korea recognise climate change as a global problem requiring an effective multilateral response.
We are both founding members of the Asia Pacific Partnership on Clean Development and Climate, a collaboration including the United States, Japan, China and India to address energy, climate change and air pollution issues. These countries account for about half the world's greenhouse gas emissions. The Partnership goes further than the Kyoto Protocol by including the world's largest greenhouse gas emitters.
Australia–South Korea relations
The first ministerial meeting of the Partnership will be hosted by Australia in While talking about shared global interests - and what is more global than the World Cup? I use the term 'share' a little loosely here, because while Hiddinck did help Korea to the semi-finals of the last World Cup he is now firmly in Australian hands.
We plan to keep him for a while yet. As the Australian national coach, I hope he can repeat for Australia the success he had here in Korea in Regional Architecture It's not surprising that the global interests we share have flowed into the regional architecture.
APEC has done a great deal over the years to broaden regional support for trade liberalisation and economic openness. At the same time, APEC has by necessity broadened its agenda over time - making valuable contributions to a range of regional challenges, including the threat posed by infectious diseases, particularly avian influenza, and cooperation on counter terrorism initiatives.
Australia will be looking to the APEC Ministerial and Leaders' meetings in coming days to make further progress in these areas. We are committed to hosting a strong APEC, one which will strengthen its position as the pre-eminent forum in the Asia-Pacific region. The East Asia Summit will bring together leaders from 16 regional countries, representing 49 per cent of the world's population and over 20 per cent of global trade.
Australia and Korea: Shared Interests, Shared Future
We live in a dynamic region and the East Asia Summit has the potential to play an important role in forging closer regional ties and in demonstrating the benefits of open regionalism. I think we can build on our long history of cooperation and work jointly to shape the emerging architecture in our region, just as we co-founded APEC and have been central to driving it forward.
We want to see open and inclusive architecture that complements existing forums. We also want architecture that can engage our regional neighbours and tackle important issues such as avian influenza, trade liberalisation, climate change and counter terrorism. Shared Interests and Values: Pointing the way Forward I would like to turn now to the future of Australia-Korea relations.
Both countries are active players in the Asia-Pacific region. South Korea, for obvious reasons, is very much focused on the Korean peninsula, and this shapes its foreign policy preoccupations.
Nonetheless, as the current extraordinary "Korean Wave" of popular culture in the region illustrates, Korea is a country with a very modern outlook that has much to offer the wider region now and in the future.
Firstly, I would like to build on our common interests and values and strengthen the government-to-government architecture. An FTA would certainly be in keeping with an economic relationship of this importance. And before you say 'agriculture', let me say that I am confident agriculture could be dealt with in the course of negotiations, as it was in our FTAs with the United States and Thailand.
Agriculture is almost always the sticking point in FTA negotiations but there is always a way through. Australia has completed or made formal progress towards an FTA with all of its top five trading partners - with the exception of Korea.
An Australia-Korea FTA would not only bring huge economic gains for both countries but would also give the political relationship more impetus and raise Korea's profile in Australia, and Australia's profile in Korea. The establishment of a stronger relationship in the energy field is also important. Korea — The Future There are risks to continued expansion in the near term.
On the domestic side, the major risk would appear to be financial market instability, perhaps related to possible bankruptcies of large companies triggering difficulties in financial institutions. The major external influence will be developments in the USA where a slowdown will affect Korean exports — as would setbacks in key Asian countries such as Japan and China.
The rapidity of the recovery owes much to swift action by the IMF as well as to Korean nationalism e. The recovery also owes much to the competitiveness of the "Korean model". Winning dominant market share in global growth industries over two to three decades meant a focus on low costs and reasonable quality, as well as on large capacity. The crisis and the response to the crisis have enabled Korea to move towards a more responsive and sustainable model.
Korea has a number of competitive attributes that should see it continue to prosper in the long term. One such attribute is the female labour force, unable so far to participate fully in the economy to their full potential for social and cultural reasons. With more and more foreign entrants to the Korean market, surplus capacity will be absorbed within a short period and foreign funds can be used to expand productive capacity using up-to-date practices. In short, there is scope for labour force expansion and productivity growth, especially with the increased technical transfers likely with foreign direct investment inflows.
Korea with its population of nearly 50 million is already a large market with sophisticated consumers. Even though wealth may not be evenly spread throughout Korea, the greater Seoul conurbation is probably of the order of 26 million people with many more people with similar standards of living in the south eastern region around Pusan.
This wealth is seen, for example, in the growth of tourism in the s which, after the setback of the financial crisis inhas resumed its upward path.
The availability of discretionary disposable income is seen on a smaller scale in the example of the investment in the Korean entertainment industry by Melbourne Aquarium. An important factor in Korea, at least in the political sphere, is the desire to be recognised as a major OECD country. In terms of economic policies, this should involve continuation of reform and moving towards a more market forces driven economy.
At the same time the economic policies do involve an interventionist approach as Korea strives to build a knowledge based economy. This interventionist approach is encapsulated in the following statement by the Minister of Science and Technology: We have both a vision and a strategy for making Korea an industrial powerhouse by boosting its scientific and technological prowess in the 21st century.
The growth of these industries not only provides a direct source of economic growth but they also provide an indirect source through the productivity improvements they bring to more traditional industries. The realisation of these policies will be beneficial to Korea, in particular, and to Australia. This important trading relationship between Australia and Korea began in the s when Korea began to purchase large quantities of minerals.