New Zealand anticipates trade boost as FTA comes into force
Xinhua, December 9, 2015 Adjust font size:
The free trade agreement between New Zealand and the Republic of Korea (ROK) will enter into force on Dec. 20, New Zealand Trade Minister Tim Groser said Wednesday.
The free trade agreement (FTA) would help New Zealand exporters grow their business in the world's 13th largest economy, Groser said in a statement.
"Under this FTA, approximately 98 percent of tariffs on New Zealand's current exports to Korea will be progressively eliminated," said Groser.
"Approximately 229 million NZ dollars (152.1 million U.S. dollars) a year is paid in duties on New Zealand exports. Duty savings in the first year alone will be in the vicinity of 65 million NZ dollars (43.18 million U.S. dollars)."
New Zealand exporters would benefit from two rounds of tariff cuts in quick succession: the first on entry into force on Dec. 20, and a second round of cuts on Jan. 1, 2016.
"The lack of a formal FTA with Korea has restricted trade growth and put New Zealand at a distinct disadvantage relative to Korea's current FTA partners. This agreement will rectify this imbalance by leveling the playing field for New Zealand businesses in the Korean market," he said. Endit