In good news for the beef industry, Australia expects to launch full-scale free-trade agreement negotiations with South Korea by the middle of the year as part of a multi-pronged trade push.
The Australian Financial Review reports that Australia and South Korea launched exploratory talks in October, with a joint feasibility study finding a deal could increase Australian exports by 30pc and boost Australia's economic output by up to $25.6 billion.
In the report the beef industry was slated to be a big winner from such a deal.
Its main competitor, the US, has already agreed to an FTA with South Korea - although it has not been ratified by Seoul - which will see the 40pc beef import tariff wiped out over time, giving the American product a distinct price advantage over Australian meat unless Australia can secure a similar deal.
Trade Minister Simon Crean told The Australian Financial Review that, while both countries must go through the process of authorising the start of formal FTA talks, "a mid-year start to negotiations is now very possible".
South Korea is Australia's third-largest export market for beef, with sales of almost $1 billion a year.
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