China, Japan, Korea, and India: Maximising Australia’s free trade agreements

At the heart of this opportunity sit some of the world’s most powerful economies. China, for example, is Australia’s largest two-way trading partner, with bilateral trade reaching almost AU$312 billion in 2024 and accounting for almost a third of the country’s total exports¹. Similarly, Japan, ranking as the third-largest trading partner after China and the United States, has two-way goods and services trade valued at AU$107.8 billion in 2024². 

Moving into 2026 and beyond, there are compelling opportunities to deepen APAC ties. However, businesses need to be strategic, explore emerging trade corridors, and leverage every available advantage to stay competitive. Free trade agreements (FTAs) are one of the most powerful tools to do exactly that. To help your business make full use of the favourable conditions to maximise your growth in APAC, this article explores Australia’s FTAs with its top trading partners in the region.

What are free trade agreements?

Before your business can fully leverage the benefits of FTAs, it is crucial to first understand what free trade agreements are. An FTA is a legally binding treaty between countries that aims to reduce or eliminate trade barriers, such as tariffs and quotas.

With lower or waived duties, Australian companies will be empowered to price their goods more competitively. By making it easier for goods and services to cross borders, FTAs also offer opportunities for Australian firms to tap into new markets or expand their existing operations in countries under these pacts. As a result, businesses can enjoy greater sales and growth, making FTA an invaluable tool to help Australian companies gain an edge over international competitors.

Australia’s FTAs and opportunities in the APAC market

Over the years, Australia has entered many free trade agreements with Western and Asian countries alike. Each FTA entails different terms. To help your business identify and act on the right opportunities, here are the key FTAs shaping Australia’s APAC trade as the trade landscape evolves:

1. China: navigate the ChAFTA in 2026 and beyond

Australia and China have a long history of trade for a diverse assortment of goods. China remains Australia’s largest export market, accounting for 24% of Australian goods and services trade with the world in 2024–2025³, a testament to the enduring strength of the China-Australia trade relationship. On 15 July 2025, during Prime Minister Albanese’s visit to China, Australia and China signed a Memorandum of Understanding (MoU) to progress a General Review of the China-Australia Free Trade Agreement (ChAFTA), signalling a renewed commitment to deepening bilateral ties.

For businesses looking to maximise the ChAFTA, here are the key developments to act on:

• Dairy tariffs fully eliminated: As of 2026, the remaining tariffs on Australian dairy products (up to 20%) have been officially eliminated under ChAFTA, opening a more competitive lane for exporters.
• Zero-rated goods now fully in effect: Businesses should be actively claiming the 0% rates for car parts, engines, plastic products, and precious stones, including opals, which were finalised in previous years and are now part of the mature 2026 trade landscape.
• Apply early for the wool quota: There is a new Australia-only duty-free quota in addition to continued access to China's WTO wool quota. Businesses should apply early to secure their allocation.
• Permanent duty-free resources: Major resources, including iron ore, gold, crude petroleum, and Liquefied Natural Gas, now enjoy permanent duty-free entry into China, providing long-term price certainty for energy exporters.
• Monitor the beef quota threshold: A 55% tariff applies to beef exports exceeding the annual quota of 205,000 tonnes, effective 2026. Exporters should monitor their shipment volumes carefully to avoid unexpected duty costs.

Apart from these favourable terms, the Chinese market offers Australian businesses access to a rapidly growing middle-class population that demonstrates a greater willingness to spend. This comes at a time when China is focusing more on infrastructure investment. With these trends, businesses in sectors such as agriculture, resources and energy can expect promising opportunities as demand for these exports increases in tandem with China’s industry and construction needs.

How DHL Express can streamline your ChAFTA shipments

To capitalise on ChAFTA’s expanded terms, businesses can use MyGTS to monitor quota status in real time and stay ahead of threshold triggers. Paired with DHL Paperless Trade, businesses can transmit digital Certificates of Origin (COO), now the standard for ChAFTA compliance, reducing paperwork delays and ensuring shipments clear Chinese customs without disruption.

2. Japan: Maximise competitive edge under JAEPA

Apart from China, Japan is another major trading partner for Australia. The Japan-Australia Economic Partnership Agreement (JAEPA), the cornerstone free trade agreement, entered into force on 15 January 2015. Since then, JAEPA has delivered strong outcomes for Australian businesses and is one of Australia’s most utilised agreements, with two-way preference utilisation above 95%⁴. For businesses looking to strengthen their Japan-Australia trade position, here are the key developments to note:

• Wine is now fully duty-free: Businesses should leverage the 0% tariff now applied to all Australian wine, both bottled and bulk. 2026 marks the point at which JAEPA’s phased reductions have fully equalised with those of the CPTPP, providing absolute duty-free entry for Australian vintners.
• Claim Australia-only cheese quotas: Businesses should act quickly to claim their share of Australia-only duty-free quotas for cheese, which have reached their highest volume levels in 2026.
• Zero tariffs on industrial goods: Tariffs on motor vehicles, power tools, and general machinery are at 0%, allowing Australian boutique manufacturers to maintain competitive pricing in Japan’s high-end industrial markets.

Japan’s consumer market continues to reward quality and provenance, making Australian agricultural and manufactured goods particularly well-positioned. Additionally, with an ageing population driving demand for premium food, healthcare, and wellness products, and a corporate sector that increasingly values eco-focused supply chains, Australian exporters who align their offer with these priorities stand to capture meaningful long-term market share.

How DHL Express supports your shipments to Japan

For Australian businesses shipping into Japan, DHL Express’ GoGreen Plus programme, powered by Sustainable Aviation Fuel (SAF), offers a compelling edge. Japan’s corporate sector is among the most eco-focused in the world, with carbon-neutral shipping logistics increasingly becoming a procurement prerequisite. Leveraging GoGreen Plus signals to Japanese buyers that your business takes sustainability as seriously as they do.

3. South Korea: Automate the KAFTA Strategy

South Korea is Australia’s fourth-largest two-way trading partner, with bilateral trade reaching AU$67.2 billion in 2024, and Australia’s third-largest export market at AU$41.6 billion in 2024⁵. The Korea Australia Free Trade Agreement (KAFTA), in force since 2014, has matured to the point where 99.8% of Australian exports now enter Korea duty-free, providing a level playing field for Australian agriculture against global competitors such as the United States. For local businesses looking to grow their Korean market presence in 2026 and beyond, here are the key developments to note:

• Cheddar cheese tariffs eliminated: As of 2026, the 36% tariff on Australian cheddar cheese has been officially eliminated under KAFTA, allowing Australian dairy exporters to compete aggressively without the need for manual quota management.
• Fresh produce fully liberalised: Almonds, cherries, and mangoes can now be exported at 0% duty, as seasonal tariff barriers have been fully removed under the 10-year KAFTA schedule.
• Health and tech supply chains: Tariffs on pharmaceuticals, vitamins, car parts, and engines are at 0%, supporting Australia’s role as a primary supplier for Korea’s health and technology sectors.

These FTA terms are complemented by South Korea’s position as a sophisticated, high-income market with strong demand for premium Australian food, wellness, and industrial products. As Korean consumers continue to prioritise quality and traceability, Australian exporters, particularly in agriculture, health, and advanced manufacturing, are well-placed to build durable brand presence and long-term supply relationships.

How DHL Express helps you unlock KAFTA savings

Maximising KAFTA exemptions depends on precise tariff classification, and South Korea is notoriously strict on HS Code accuracy. Businesses should use DHL MyGTS to validate the 10-digit Korean Harmonised System (HS) code to ensure the correct codes are applied at the point of lodgement. DHL Express’ automated verification ensures FTA exemptions are triggered without audit delays, protecting your margins on every shipment.

India: Lead the 100% milestone

India is one of Australia’s most critical growth corridors and a market that is fundamentally reshaping the future of India-Australia trade. As Australia’s fifth-largest trading partner, two-way trade in goods and services was valued at AU$54.4 billion in 2024–2025⁶, underscoring the breadth and depth of the bilateral relationship.

The India-Australia Economic Cooperation and Trade Agreement (ECTA), Australia’s landmark India-Australia Free Trade Agreement, entered into force on 29 December 2022, marking a historic milestone in trade relations between the two nations. As of 2026, Australia provides duty-free access to 100% of Indian tariff lines, while India provides zero-duty access to 90% of Australian goods, a significant leap forward for exporters on both sides.

With a population of 1.4 billion, India’s youthful demographic, diversified economy, and strong growth trajectory present significant opportunities for Australian businesses across education, agriculture, energy, resources, tourism, healthcare, financial services, infrastructure, science and innovation, and sport. For exporters ready to enter one of the world’s fastest-expanding consumer markets, the conditions are now exceptionally favourable.

How DHL Express simplifies shipping to India

One of the most common friction points for businesses entering the Indian market is KYC (Know Your Customer) compliance, a mandatory identity verification process that can slow shipment clearance if not managed proactively. To bypass this challenge, businesses should mandate that Indian customers upload their ID documents to the DHL KYC Portal before shipping, ensuring a smoother customs experience and faster last-mile delivery from the outset.

How DHL Express helps you make the most of Australia’s FTAs

With DHL Express’ robust global network, you can further enjoy peace of mind knowing that your logistics team can be trusted to support your business in connecting with customers worldwide. Whether you’re navigating complex tariff classifications with DHL MyGTS, automating customs documentation through MyDHL+, or reducing your carbon footprint with GoGreen Plus, DHL Express Australia provides the end-to-end global logistics infrastructure that turns favourable FTA conditions into a competitive advantage.

From streamlining business operations management to driving business efficiency across every shipment, DHL Express empowers Australian businesses to scale confidently across the APAC region and beyond. Sign up for your business account with us today to grow your business across Australia’s most valuable trade corridors.