NZ beef exports to benefit from FTA with Korea
10 December 2015
A Free Trade Agreement (FTA) between Korea and New Zealand is expected to enter into force before the end of 2015, according to Beef + Lamb NZ (BLNZ). This will reduce the tariff burden on NZ beef exports into Korea, in a similar fashion to the Korea-Australia FTA in 2014.
Around one fifth of the total tariff burden of NZ beef exports in 2014 was applied on beef exported to Korea – NZ$64 million of a total NZ$323 million. The current tariff on NZ beef imported into Korea is 40%. There will be two tariff cuts within two weeks of each other – the first when the FTA enters into force on 20 December and then again on 1 January 2016.
BLNZ notes that although Korea is NZ’s fourth largest beef export market, trade volumes have dropped due to tariff advantages that other countries – notably the US and Australia – have gained in the last few years. There is hope in the NZ beef industry this will improve their competitiveness in Korea.
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