Australian citrus exporters' tariffs in Korea could be cut in half next season if the a free trade agreement between the two nations is finalized by December, in a deal that also includes a chapter on agricultural cooperation.

In a release, Citrus Australia market access manager David Daniels said South Korea was not currently a major destination due to its high tariffs for Australian fruit, but its potential to grow was huge.

"With Asian markets under enormous pressure this season, the Korean market would provide a valuable outlet for fruit," Daniels said.

"The Korean market would also complement sizes and grades that are not typically well-received in other Asian markets.

"Currently Australian oranges are subject to a 50 per cent tariff which not only reduces demand but drives down the price buyers are willing to pay for product. Add to this the fact that we're competing with the tail end of the American season has proved tough."

The industry body said the Korea-Australia free trade agreement (KAFTA) would also foster a spirit of cooperation, with the two trading partners expected to benefit from shared technology and knowledge transfer.

Citrus Australia said it had developed a strong relationship with citrus growers from Korea's main producing region, Jeju Island.

"The Department of Foreign Affairs and Trade (DFAT) was optimistic that an agreement could be reached as early as December. Citrus Australia commends the government for such rapid progress," the release said.

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