The latest round of tariff reductions under the New Zealand-Korea free trade agreement (FTA) will benefit importers of cars, trucks, heavy machinery and electronics says the government.
Trade Minister Todd McClay says more local businesses looking to expand into Korea will benefit from the start of 2017 which saw two-thirds of New Zealand’s exports to Korea become duty-free, up from 46% in 2016.
“Thanks to this continued progress under the FTA, more New Zealand businesses can compete favourably in the Korean market,” says McClay.
New Zealand and Korea celebrated the first anniversary of the agreement in December 2016.
Since the FTA’s entry into force in December 2015, New Zealand has experienced strong results particularly in the food and beverage sector where exports to Korea have increased by over 16%.
“Korea is New Zealand’s 6th largest goods export market, worth NZ$1.5 billion in the year ending September 2016, but this isn’t just about productive businesses wanting to sell into Korea,” says McClay.
“The FTA also gives New Zealand consumers better access to high-quality Korean goods such as cars and heavy machinery and also electronics,” he says.
Fifteen years after the FTA’s entry into force, 97.8% of New Zealand’s total current exports to Korea will enter duty and quota free.
“New Zealanders are benefiting from the Government’s outward looking relationship with our global partners, and this includes always progressing more free trade agreements,” says McClay.
