[Australia]: Message to Korea [SEC=SECRET]

[John]

"We welcome the ambition behind Australia’s proposal and agree our economies are highly complementary. Korea is prepared to move forward on broad tariff elimination with reasonable transition periods for sensitive sectors, including agriculture, supported by appropriate safeguards and review mechanisms. We would also hope to strengthen long-term cooperation in energy and critical minerals, expand professional mobility and services access, and ensure clear and transparent dispute resolution. If this reflects our shared direction, we are ready to receive your draft."

Owen

 

[Owen]

"Does Korea have any sort of special economic arrangement with the former North? Obviously when the two nations reunified there was massive disparity between the two, economically. Have you thought of establishing a special economic zone of sorts over the former North? Like a situation where there might be lower or no taxes on businesses operating within the zone, in an attempt to spur private investment and infrastructure growth? These things would obviously need to be addressed in an agreement. If it is not the current situation, may I suggest that perhaps a special economic zone could be beneficial for the people of the former North?"

John