Korea-N.Z. FTA roundtable opens in Seoul today

The Korea-New Zealand Business Roundtable opens in Seoul today, aimed at strengthening economic ties between the two countries.

The event, jointly organized by the Korea International Trade Association and the New Zealand International Business Forum, will focus on the potential for expanded cooperation through a successful free trade deal between the two countries.

It brings together more than 70 government and businesses leaders from both countries, including Korean Trade Minister Kim Jong-hoon and his New Zealand counterpart Trade Minister Tim Groser.

Korea and New Zealand began the first round of their free trade negotiations on Monday in Seoul.



"Korea and New Zealand have complementary economies. The Korea-New Zealand Business Roundtable will look at new opportunities for business growth both between us and more generally in the Asia Pacific region," KITA chairman SaKong Il said.

A Korea-New Zealand FTA deal would bring significant benefits to both countries.

"Korea is already a major trade and investment partner for New Zealand. This is a good opportunity for business leaders from both countries to explore a way forward for this important relationship, particularly as negotiations toward a free trade agreement get underway," NZIBF chairman Graeme Harrison said.

Business sessions at the roundtable will discuss ways to expand cooperation in the areas of green growth and information and communications technology as well as contributions the FTA could make to economic recovery and regional trade liberalization, a KITA official said.

"An FTA deal will offer Korea an opportunity to expand its presence in the New Zealand import market, currently dominated by China, Thailand and Singapore," a KITA official said.

Officials from New Zealand also said an FTA with Korea would provide ways to improve the nation`s agriculture industry rather than to carve out parts of the sector. Some Koreans worry about the potential damage that an FTA with the farm and dairy industry powerhouse would have on its local industries.

"Tech transfer in agriculture is key aim, not flooding the market," said John Ballingall from New Zealand Institute of Economic Research.

"New Zealand can help Korea improve its agricultural productivity through applying its expertise to Korea`s resources," John Ballingall from New Zealand Institute of Economic Research said in his report.

The Korea-New Zealand FTA negotiation was preceded by a meeting between President Lee Myung-bak and Prime Minister John Key in March when the Korean leader visited New Zealand.

During a summit held in Auckland, the two heads clarified their opposition to protectionism and stressed the role of global trade liberalization in fighting the economic crisis. The two also discussed ways to promote bilateral cooperation in green growth, agriculture, education, science and other various fields. In a joint statement, Lee and Key declared that the two countries would begin negotiations on an FTA "which would set the framework for future economic engagement."

The two governments conducted two rounds of preliminary negotiations since 2007, following a joint study by private economists. Two-way trade was estimated at $1.95 billion in 2008. Korea`s exports and imports reached $830 million and $1.12 billion, respectively. Korea`s main shipments are petrochemical goods, cars, mobile phones and construction machinery, while New Zealand sells meat, crops and lumber.

A free trade deal between the two countries is expected to boost Korea`s GDP by 0.08 percent annually, according to the state-run Korea Institute for International Economic Policy.

(christory@heraldm.com)





By Cho Chung-un