Korea FTA an early Xmas present

Exporters are in for an early Christmas present with a double dose of tariff cuts to South Korea.

Australia's free trade agreement with its fourth-largest trading partner comes into force on Friday.

It will give some exporters an immediate tariff cut on December 12, followed by a second on January 1.

Tariffs will be eliminated on 84 per cent of Korea's imports from Australia immediately.

On full implementation, 99.8 per cent of Australian exports will enter Korea duty free.

The agricultural, resource and industrial sectors will especially benefit from the deal while services and manufacturing will also enjoy greater market access.

However, it controversially gives foreign investors the right to sue the Australian government, with the inclusion of Investor-State Dispute Settlement provisions.