As a result tariffs would be eliminated on Australia's major exports and there "will be significant new market openings in services and investment", he said.
Mr Abbott said it was good news for exporters, jobs, farmers and the country at large. "Under this agreement tariffs will be eliminated on Australia's major exports to Korea and there will be significant new market openings in services and investment,'' he said.
As part of the agreement, tariffs of up to 300 per cent will be eliminated on key Australian agricultural exports such as beef, wheat, sugar, dairy, wine, horticulture and seafood, as well as resources, energy and manufactured goods.
The government says the deal will make a difference at the farm gate, "from mango exporters to macadamia and potato growers''.
It said agricultural exports to Korea will be 73 per cent higher after 15 years as a result of the deal and overall exports to Korea will be 25 per cent higher resulting in the creation of more than 1700 jobs.
“It’s a great outcome for Australia’s farmers and producers and achieved within the first 100 days of the Coalition Government," Agriculture Minister Barnaby Joyce said.
“The Korea-Australia FTA will provide important new opportunities for Australian agricultural exporters and give our producers and exporters a more level playing field on which to build our market share.
National Farmers Federation president Brent Finlay said the deal recognised agriculture as one of the nation's export strengths and will open opportunities for the sector in Korea.
"While the deal doesn't deliver everything the Australian agricultural sector had advocated for, it is a strong step towards securing Australia's important trading future with Korea and in improving international market access for Australian agricultural goods,'' Mr Finlay said, speaking from Indonesia where he has been chairing the Cairns Group Farm Leaders trade discussions.
"The NFF is heavily involved in all of Australia's trade negotiations regarding agriculture, so we understand how complex and challenging it is to secure agreement.
The free trade agreement with Korea is a win for Australia's 2,000 potato growers, who will now be able to access a developing market without the restrictions of tariffs.
"Potatoes will see an immediate elimination of tariffs into Korea, which means that growers will be able to reap the benefits of the new agreement in the early months of 2014,'' said AUSVEG spokesperson, Hugh Gurney.
He said in 2012-13, $7.4 million of vegetables, including $6.3 million of potatoes, were exported to Korea.
Joining the list of vegetables now eligible for trade with Korea under the FTA are cherries, dried grapes, fruit and vegetable juice, apricots, mangoes, peaches and plums.
