Monday, 09 January 2017 10:06

FTA boosting exports to Korea

Written by 
The start of 2017 saw two thirds of New Zealand’s exports to Korea become duty free, up from 46% in 2016.
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.

More like this

NZ seeks certainty on US tariff, says McClay

Trade Minister Todd McClay says his officials plan to meet their US counterparts every month from now on to better understand how the 15% tariff issue there will play out, and try and get some certainty there for our exporters about the future.

Farmers urged to prepare as heavy rain looms

With adverse weather set to rain down on the Top of the South, the Bay of Plenty and parts of Northland, Agriculture Minister Todd McClay says farmers, foresters, and growers need to prepare for possible challenges.

Featured

'One more push' to eliminate FE

Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Quid prod quo?

OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…

Deadwood

OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter