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Home / Business / Companies / Agribusiness

Benefits in trade agreement with Korea - study

NZPA
21 Feb, 2008 09:24 PM2 mins to read

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KEY POINTS:

A free-trade agreement between New Zealand and Korea would inject money into both countries' economies, a new study shows.

Trade Minister Phil Goff today said the joint New Zealand-Korea FTA feasibility study found that an FTA between the two countries would "bring substantial economic benefits".

The study, carried
out by private research organisations, was agreed to by the governments in 2006 and began last year.

Mr Goff said the study provided a strong foundation for considering free trade talks.

New Zealand has been keen on talks for some time, but South Korea has been less enthusiastic.

Mr Goff said the next step would be for representatives from the two governments to meet in April to explore the study's findings.

The meeting would provide an early opportunity for discussing further ways of enhancing the relationship between the two countries, he said.

"We enjoy a highly complementary trading relationship and an FTA would be mutually beneficial. We also work closely together as longstanding friends on issues affecting the Asian region."

New Zealand's total trade with Korea was worth $2.7 billion in the year to June 30, 2007.

New Zealand International Business Forum executive director Stephen Jacobi welcomed the study's findings.

"Korea is already a major market for New Zealand with exports including wood, beef, cheese and fresh fruit.

"Two way trade is balanced and complementary, scientific cooperation and investment ties are expanding, and there are strong connections through education and tourism."

Mr Jacobi said Korea was emerging as a leader for trade liberalisation in the Asia Pacific region, having recently signed a significant deal with the United States which is awaiting ratification.

- NZPA

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