New Zealand-Korea FTA initialledTrade
Trade Minister Tim Groser welcomed today’s initialling by Chief Negotiators of the Free Trade Agreement (FTA) between New Zealand and the Republic of Korea.
“Initialling marks the end of the text’s legal verification process. It’s another milestone as we progress towards bringing the FTA into force,” says Mr Groser.
“The next step is translation of the text into Korean, which will be completed early next year. Following translation, the FTA will be signed.
“This FTA will deliver real economic benefits to both our countries. It will secure our position in the Korean market and will create more opportunities for traders as tariffs are gradually removed.”
On entry into force, tariffs will be eliminated on 48 per cent of current New Zealand exports which will create an estimated duty saving of $65m in the first year alone. Duties on New Zealand’s current exports will largely be eliminated within 15 years of entry into force.
Korea is New Zealand’s sixth largest export destination for goods and services and eighth largest import source of goods and services, with total two-way trade of $4 billion in the year ending June 2014.
Improving access to international markets through FTAs is a key component of the Government’s Business Growth Agenda. Supporting our exporters is crucial to creating new jobs and boosting incomes for New Zealanders.
Further information, including the full text of the Agreement (in English), is available at www.mfat.govt.nz/nzkoreafta