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New Zealand signs FTA with South Korea to eliminate tariffs on 48.3% exports

New Zealand signs FTA with South Korea to eliminate tariffs on 48.3% exports

WELLINGTON: New Zealand’s Trade Minister signed the New Zealand-South Korea Free Trade Agreement with his Korean counterpart, Yoon Sang. The agreement will eliminate tariffs on 48.3 percent, or NZD793.7m (USD604m) of New Zealand’s current exports to South Korea. The agreement will progressively remove tariffs on 98 percent of New Zealand’s exports to South Korea. In addition, New Zealand will completely remove its duties on all South Korean products within seven years of the agreement coming into force.

“Particular success stories include the removal of wine tariffs of 15 percent on entry into force, and the removal of 45 percent tariffs on kiwi fruit effectively five years after entry into force,” Groser said. “Improving access to international markets through free trade agreements 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.”

“This Agreement secures the long-term future of New Zealand exporters to Korea whose international competitors were benefiting from Korea’s other FTAs. It reduces barriers to trade and investment, provides greater certainty about the business environment, and ensures our exporters remain competitive in each other’s market,” Groser said.

The New Zealand Government said that the FTA will offer improved protections for New Zealand investors in the Korean market, and will reinforce the attractiveness of New Zealand as a stable investment destination.