House of Representatives
Customs Amendment (Korea-Australia Free Trade Agreement Implementation) Bill 2014
Explanatory Memorandum
(Circulated by authority of the Minister for Immigration and Border Protection the Honourable Scott Morrison MP)Modelling conducted in late November 2013
The Economist Intelligence Unit
Ministry of Trade, Industry and Energy
The modelling study conducted by the Centre for International Economics assumes entry into force on 1 January 2015 and calculates present value using a discount rate of five per cent.
The Centre for International Economics conducted its analysis using global and domestic computable general equilibrium economic models. The focus of this modelling was on the impact on the production and flow of goods between countries arising from changes in tariff rates and quota arrangements. Because of the difficulty in modelling services and investment trade liberalisation, these components were not included in the modelling study's main simulations.
Conducted by the Centre for International Economics in late November 2013
Conducted by the Centre for International Economics in late November 2013
Current statistical data on services trade between Australia and Korea are not as comprehensive as goods trade data, and is likely to (in some cases significantly) understate actual value and volume of services trade. This is for two reasons: difficulties in measurement, particularly in relation to mode 3 (commercial presence, as defined under the WTO General Agreement on Trade in Services), which is not picked up in current services trade data methodology, and because of confidentiality restrictions impacting on the level of detail of data available.
Conducted by the Centre for International Economics in late November 2013
Consistent with past practice, Korea wishes to initial the agreement prior to signature and may release publicly the FTA text at that time. At time of writing, Australian officials were consulting with Korean counterparts on when the text would be made available publicly.