Improving market access under the China-Korea and China-Australia Free Trade Agreements

The much anticipated China-Korea Free Trade Agreement (“CKFTA”) and the China-Australia Free Trade Agreement (“ChAFTA”) took effect on 20 December 2015. Producers of goods in South Korea and Australia can now improve their access to the ever growing Chinese middle-class.

For Trade in Goods the “1st tier tariff elimination” took effect on 20 December and the “2nd tier tariff elimination” took effect on 1 January 2016. Companies can enjoy lower tariffs assuming that they comply with the Rules of Origin.

This Trade Alert highlights the key benefits of tariff elimination that companies may enjoy. South Korean and Australian producers may “level the playing field” with competitors from countries such as ASEAN, New Zealand, Chile, and Switzerland with whom China has already established FTA.

 

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Frank Wu

Partner, Shanghai

Tel: +86 21 2323 3864

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