KEY POINTS:
Government is asking for submissions from the public on whether New Zealand should start trying for a free trade deal with South Korea.
Trade Minister Tim Groser today called for submissions but said he was confident there would be support for the move here and in Korea.
"Korea is New Zealand's sixth largest export market, with our total bilateral goods trade worth around NZ$2.5 billion a year," said Groser.
The country was also an important source of international students and tourists.
"Entering into an FTA (free trade agreement) would see the platform laid to develop further this important relationship," he said.
Business NZ chief executive Phil O'Reilly said a free trade deal with Korea would help to grow New Zealand exports and boost investment in both countries.
"Trade between our two countries is very complementary - our food products for their cars and electrical goods. A free trade agreement would help both countries grow and diversify the relationship.
"Consideration of a new trade deal is great news in the current economic environment -where there has been increasing talk of protectionism - and would add to the expanding web of trade relationships that New Zealand enjoys in Asia-Pacific."
Groser said a joint private study conducted in 2007 by the New Zealand Institute of Economic Research (NZIER) and the Korean Institute for International Economic Policy (KIEP) said an FTA would offer net economic benefits to both countries.
"Given the current global economic climate, access for New Zealand businesses to a market as large and mature as Korea is important to economic growth and confidence," he said.
Business NZ's Phil O'Reilly urged the Government to work with business in drafting the agreement and said those businesses that trade with Korea or had an interest in doing so, should make a submission to the Ministry.
Submission information is available on the MFAT website.
- NZPA/HERALD ONLINE
