Newly ratified trade deal offers enhanced business opportunities
The New Zealand Chamber of Commerce in Korea, known as “The Kiwi Chamber,” welcomes the upcoming entry into force of the Korea-New Zealand Free Trade Agreement (FTA).
The high-quality trade deal, which will formally come into effect on December 20, 2015, offers both economies significant business and investment opportunities and will strengthen two-way trade, which currently stands at around NZ$4.25 billion (KRW 3.3 trillion or US$2.8 billion) annually.
With the baton being passed from government to business, the Kiwi Chamber plans to play an increased role in helping both Korean and New Zealand businesses take full advantage of the new trade agreement.
“It is now time for businesses from both countries to seize the tremendous opportunities the Korea-New Zealand FTA presents,” said Dr. Tony Garrett, chairman of the Kiwi Chamber. “The Kiwi Chamber is well-placed to assist in this area, and our full efforts in the coming years will be to continue supporting the development of this important trade partnership.”
Since 2009, the Kiwi Chamber’s primary goal has been to work with both the government and business communities to facilitate a win-win free trade agreement with Korea – one which lays the groundwork for investors and exporters from both countries to expand their horizons.
“For the last six years, Kiwi Chamber efforts have focused on concluding the FTA, and now our energies will shift toward maximizing it,” noted Dr. Garrett.
Key benefits for Korea include the removal of duties in important existing sectors such as manufactured goods.
There will also be an expansion of the Working Holiday Scheme and short-term English language courses for students from rural areas, which will enable young Koreans to experience New Zealand and develop bonds that will stay with them in later life.
The agreement is expected to reduce tariffs on New Zealand exports to Korea, its sixth largest trading partner, by NZ$65 million (KRW 56 billion or US$43 million) in the first year. Key tariffs to be eliminated over time include a 45 percent duty on kiwifruit, 89 percent on butter, 40 percent on beef, 15 percent on wine and up to 11 percent on most processed wood products. This will benefit New Zealand exporters and Korean consumers alike.