FTA with Korea Looming

January 26, 2009 International FinanceInternational TaxationNew Zealand FinanceNew Zealand Taxation  No comments

The possibility of a Free Trade Agreement (FTA) between Korea and New Zealand is becoming a more realistic possibility with positive signs from both Governments giving positive indicators.

The New Zealand Government has called for submissions on the possibility of a FTA with Korea,
according to Trade Minister Tim Groser in a January 23rd press release. Further, the Korean Foreign Minister, Yu Myung-hwan visited New Zealand over the subsequent weekend. Talks regarding the FTA were scheduled for Sunday.

According to Mr Goser, Korea is the sixth largest trade partner for New Zealand. He also extolled the great benefits that would be found by both countries in today’s economic environment by embracing the FTA possibility. There are also great benefits to New Zealand by forging strong ties with such a well developed and mature economy as Korea. The Korean GDP for 2008 was almost US$954 billion, while New Zealand for the same period was US$128 billion.

New Zealand already has a film co-production treaty signed with Korea.