FTA boosting exports to Korea

Trade Minister Todd McClay says more local food businesses looking to expand into Korea will benefit from the latest round of tariff reductions under the New Zealand-Korea Free Trade Agreement, signed December 2015. New Zealand has experienced strong results particularly in the food and beverage sector where exports to Korea have increased by over 16%. Korea is New Zealand’s 6th largest goods export market, worth NZ$1.5 billion in the year ending September 2016. Meat, dairy, fruit and seafood exports have all enjoyed growth of over 20%. The value of New Zealand’s Kiwifruit exports to Korea grew nearly 20% in 2016 with further progress expected as the 30% tariff on Kiwifruit has now reduced to 22.5% per cent (half of what exporters were paying before the FTA). While New Zealand is ranked as Korea’s 10th-largest wine importer, we are emerging as a source of high quality wine among early adopters in the market. The $2.7 million in New Zealand wine sales to Korea in 2015 represented an 18% increase from a year earlier. Following the removal of tariffs at the end of 2015, New Zealand wine exports increased a further 29% in the first half of 2016 compared to a year earlier. Exports of processed deer velvet have also increased by over 80%. From 1 January 2017, the list of products that can be exported duty free will expand to include products such as frozen fish fillets, prepared or preserved frozen potatoes and asparagus.