Korean FTAs in Effect
The Korea-New Zealand Free Trade Agreement (FTA) went into effect on
December 20, 2015
New Zealand, a mid-sized developed country with GDP per capita over USD 40,000, is a global agricultural exporter. Thanks to the successful cooperation between Korea and New Zealand in the service and investment sectors, the Korea-New Zealand FTA will not only expand our export of industrial products, but also increase the bilateral economic cooperation in agricultural goods, IT and infrastructure.
Significance of the Agreement
Increase trade in key sectors
The Korea-New Zealand FTA will increase the import of raw materials and agricultural and livestock products and export of industrial products including heavy construction equipment and electronic goods.
Expand bilateral cooperation and exchanges in human resources
The Korea-New Zealand FTA will expand agricultural and forestry cooperation and establish more working holiday programs to provide language training to the youth in the agricultural and fishing communities and nurture agricultural specialists; and implement systems to facilitate human resources exchange including adopting temporary employment entry programs.
Importance of the New Zealand Market
- New Zealand has already signed FTAs with nine countries, including China, Australia, ASEAN, Hong Kong, Taiwan and Chile. The Korea-New Zealand FTA will help Korean companies to regain their competitiveness in the New Zealand market.
- New Zealand is a globally competitive player in the primary industry. Therefore, the cooperation between Korea and New Zealand in the agricultural products sector will enhance the competitiveness of Korea’s agricultural products industry.
- Korean companies that have competitiveness in building ICT and infrastructure will expand exchanges with New Zealand in sectors including services and technology cooperation for IT, smart city and gaming.