New Zealand and Korea
New Zealand and Korea: economic relations
Korea is New Zealand’s fifth largest bilateral trading partner with two-way merchandise trade totalling NZ$3.36 billion in the year ending December 2012. New Zealand’s exports to Korea (NZ$1.55 billion) include logs, aluminium, beef, kiwifruit, dairy and seafood; imports from Korea (NZ$1.81 billion) include capital and consumer items such as cars, electronic equipment and machinery.
Currently, NZ exporters pay NZ$195million total tariffs each year to Korea. For example, there is an 89 percent tariff on butter. A Free Trade Agreement (FTA) with Korea would provide gains to real GDP between 2007 and 2030 of US $4.5billion for NZ and US $5.9billion for Korea. (1)
More about the relationship with Korea
Following a preliminary study, Prime Minister John Key and then President Lee Myung-Bak officially announced the intention to negotiate a Free Trade Agreement (FTA) in March 2009, and negotiations are currently underway. Refer to this website for the latest updates and further information on those negotiations.
Both New Zealand and Korea are also involved in negotiations toward establishing the Regional Comprehensive Economic Partnership (RCEP) in the East Asian region which began in 2013. Refer here for further information about RCEP.
NZIBF interest in Korea
NZIBF is committed to working towards the closest possible relationship between New Zealand and Korea that reflects the strong ties between the two countries and their growing economies.
NZIBF believes that Korea needs to be positioned alongside Australia, China, the United States, Japan and the European Union as key economic partners for New Zealand in the 21st century. Today, New Zealand and Korea’s relationship is characterised by shared interests in the peace and security of the Asia Pacific region, expanding trade and investment ties, positive scientific cooperation and strong connections through education and tourism.
With its partner the Korean International Trade Association (KITA), NZIBF has organised two Korea NZ Business Roundtable meetings in Seoul in June 2009 and July 2010.