Japanese and South Korean automotive manufacturers expect to broaden their sales in Australia after leaders of the countries signed free trade agreements on April 7 and 8.
Under terms of the agreement with Japan, Australia has agreed to drop a 5 percent tariff on imported cars, which is expected to lower the cost of a Japanese vehicle by $1,500 on average, reports News.com. The deal is also expected to help Australian car part manufacturers compete in the global supply chain.
About 370,000 Japanese cars are sold in Australia each year, reports Drive.com.
South Korean automakers such as Hyundai Motor and Kia Motors will benefit from a similar agreement signed April 8 that also drops the 5 percent tariff on imported vehicles in three years. Import tariffs on gasoline-powered South Korean cars with an engine capacity of less than 3 liters will be immediately removed, reports Xinhuanet.com.