NZ-Korea FTA set to benefit NZ exportersTrade
Trade Minister Todd McClay has today welcomed entry-into-force of the New Zealand-Korea Free Trade Agreement.
“This high quality agreement, negotiated and signed by former Trade Minister Tim Groser, will bring significant commercial benefits to New Zealand exporters,” says Mr McClay.
“From today, current duty-free access to the Korean market is ‘bound in’, and existing tariffs will be eliminated on $793 million, or 48 per cent, of New Zealand exports.
“The wine industry benefits immediately from a full elimination of the 15 per cent tariff on their exports to Korea. This is a significant win.
“New Zealand’s cherry exports will also now benefit from duty-free access, right in the middle of their growing season. The previous tariff on cherry exports was 24 per cent.
“Kiwifruit exports will from today enjoy a 7.5% reduction in tariffs. Kiwifruit previously faced a 45% duty, and over the past year, New Zealand kiwifruit growers paid over $20 million in duties. Kiwifruit exporters will enjoy duty-free access to Korea in 2020.
“Many other products, including hides and skins, some forestry products, some aluminium and many industrial goods, will also enjoy duty-free access to the Korean market from today.
“The FTA will also mean greater services and investment opportunities for New Zealand. Services exporters will benefit from substantially improved services market access commitments over and above Korea’s existing WTO commitments.
“These include adult education services, legal services and tour operator services, to name just a few. Investments will also enjoy greater legal protections.
“The FTA will also guarantee access for our skilled service suppliers, intra-corporate transferees and business visitors to enter and stay temporarily in Korea to conduct their business.
“This FTA will enable New Zealand exporters to sell more products to Korea and grow their businesses, creating more jobs and higher incomes for New Zealanders,” says Mr McClay.