Koreans swing by to set up trade talks

Danny Lee gives Lee Myung-bak and John Key a quick lesson. Photo / Glenn Jeffrey

President of the Republic of Korea Lee Myung-bak and Prime Minister John Key concluded their meeting in Auckland yesterday with a promise to begin bilateral free-trade agreements as soon as possible.

In a joint statement, the leaders said the "complementary economic structure" of the two nations provided opportunities to increase trade and investment. They stressed the importance of maintaining open markets in an economic downturn.

Two-way trade between New Zealand and South Korea is worth over $2.4 billion a year. South Korea is New Zealand's sixth biggest export market.

New Zealand and neighbour Australia signed a free-trade agreement with the 10-nation Asean grouping in Thailand last Friday.

The talks between the two leaders also included the importance of educational links, and collaboration in food innovation, renewable energy and nanotechnology. Both leaders agreed to strengthen co-operation on green growth, and to encourage tourism.

Mr Key said: "As Tourism Minister, I am pleased that President Lee has agreed to continue working together to enhance tourism and fully utilise the Working Holiday schemes in both countries."

Lee Myung-bak was in the country for 24 hours, in which time he attended business functions, met Korean-born New Zealand golfer Danny Lee, and laid a wreath at the Auckland War Memorial.

The local horticulture sector was encouraged by the free-trade agreement negotiations. South Korea is New Zealand horticulture's fifth largest export market, valued in 2008 at $86 million. But tariffs paid to South Korea in 2008 were $34 million.

Horticulture New Zealand chief executive Peter Silcock said tariffs of 50 per cent for onions and 45 per cent for kiwifruit made South Korea relatively unattractive for trade, and welcomed any deal that would reduce tariffs.

A New Zealand study in February last year said a free-trade agreement between it and South Korea could double exports within five years.

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