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 take advantage of the preferential policies to improve their market share in the ever-growing Chinese market.
For Trade in Goods, the '1st tier tariff reduction and elimination' took effect on 20 December 2015 and the '2nd tier tariff reduction and elimination' took effect on 1 January 2016. Companies can enjoy the preferential policies under the respective FTA provided that the Trade in Goods meet the Rules of Origin conditions stipulated therein.
The purpose of this News Flash is to update the key benefits in tariff reduction and elimination that companies may enjoy. South Korean and Australian producers can 'level the playing field' with competitors from countries such as ASEAN, New Zealand, Chile, and Switzerland with whom China has already signed an FTA.