NZ signs Free Trade Agreement with KoreaPrime Minister
Prime Minister John Key says New Zealand’s Free Trade Agreement (FTA) with Korea opens a new chapter in the two countries’ relationship.
Mr Key and President Park Geun-hye of Korea witnessed the signing of the Agreement by Trade Ministers Tim Groser and Yoon Sang-jick in Seoul today.
“The Agreement shows the strength of the relationship between New Zealand and Korea. It symbolises our countries’ commitment to economic openness and market integration in the Asia-Pacific region,” says Mr Key.
“Korea is one of New Zealand’s biggest and most important trading partners. This Agreement makes it easier for Koreans and Kiwis to do business with each other, and the removal of tariffs will benefit consumers in both countries.
“At the moment, New Zealand exports into Korea attract NZ$229 million a year in duties. Tariff reductions in the first year of the FTA alone will save an estimated NZ$65 million.”
The Agreement now needs to be ratified by the New Zealand Parliament.
“We are keen for the Agreement to come into force this year,” says Mr Key.
“With a population of over 50 million and as the 13th largest economy in the world, Korea is an attractive market for New Zealand exporters.”
Notes for editors:
- Korea is New Zealand’s sixth largest export destination for goods and services and our eighth largest import source, with total two-way goods trade of NZ$4 billion.
- Negotiations on the Agreement started in June in 2009 and concluded in November 2014.
- The Agreement was initialled on 22 December 2014. Initialling marked the end of the text’s legal verification process.
- More information, including the full text of the Agreement, is available at korea.fta.govt.nz