New Zealand’s horticultural sector looms as one of the big winners from the announcement of a free trade agreement with South Korea.
The New Zealand government confirmed that it had reached terms for the trade pact with the Asian nation over the weekend, with the deal likely to be ratified over the first quarter of 2015.
Lain Jager, chief executive of single-desk kiwifruit marketer Zespri, welcomed the news, with the 45 per cent tariff rate on New Zealand kiwifruit expected to be eliminated under the agreed terms of the FTA. Jager suggested New Zealand kiwifruit growers have paid approximately NZ$20m (US$16m) in tariffs to South Korea over the last 12 months.
“It is hugely satisfying that the industry can focus on building sales in the South Korean market, which will benefit both New Zealand and South Korean growers, as well as South Korean consumers,” Jager said. “With volumes of our new SunGold variety increasing to over 50m trays by 2018, this gives us a strong platform to build sales in this market.”
Bilateral trade between the two nations topped NZ$4bn (US$3bn) over the 12 months to June 2014, with South Korea currently New Zealand’s sixth largest export destination. New Zealand trade minister Tim Groser said the FTA would significantly bolster trade relations between the two nations.
“You will see a very significant expansion of New Zealand exports in the next 10 years,' Groser explained. 'We are laying the foundations for a very, very good future for New Zealand exporters in the world's emerging markets.”
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