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Korea Republic of,New Zealand : DCANZ welcomes conclusion of FTA negotiations between NEW ZEALAND and KOREA.

The successful conclusion of Free Trade Agreement (FTA) discussions between New Zealand and Korea has been welcomed by the Dairy Companies Association of New Zealand (DCANZ).

Elimination of tariffs on the vast majority of dairy tariff lines over reasonable periods has been resulted due to the contract. There will be a transitional quota of 7000 tonnes increasing at 3% per year until elimination, for cheese. And an 800 tonne quota growing at 3% per year until elimination,for butter. A permanent quota on milk powder which starts at 1500 tonnes and then grows at 3% per annum until year 10 is also included in the deal. All of these results compare very well with the results of the earlier FTAs that Korea has concluded with the EU, US and Australia.

The deal was a good result given these had been very difficult discussions said DCANZ chairman, Malcolm Bailey.

Bailey said, "With other larger countries having concluded FTAs already with Korea, it was undoubtedly a hard road for Minister Groser and his negotiators to get these outcomes. They have done a fine job in those circumstances and the dairy industry deeply appreciates their efforts.

"In 2013, Korea was New Zealand's 19th largest dairy export market, with trade valued at USD$200.5 million. New Zealand exporters currently face import tariffs on dairy of between 8 and 176 percent. In the absence of this deal, this would have resulted in New Zealand dairy exports being at a disadvantage compared with EU, US and Australian exporters who already have FTAs in place, said Bailey.

He added, "In concluding this deal the Government has ensured that New Zealand's trade opportunities will not be curtailed as a result of export competitors enjoying lower tariff rates than us. That has been a very real worry for the New Zealand industry."

The contract with Korea will also complement New Zealand's current trade deals in North Asia including those with China, Hong Kong and Taiwan.

Bailey said, "New Zealand's growing suite of trade and economic co-operation agreements is testament to the commendable bipartisan approach successive New Zealand Governments have taken to trade liberalisation. This approach continues to be to the benefit of New Zealand as a whole, as well as the dairy sector.

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Publication:Mena Report
Geographic Code:9SOUT
Date:Nov 18, 2014
Words:387
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