South Korean President Park Geun-hye and New Zealand Prime Minister John Key on Monday hailed the signing of a free trade agreement that could help further boost bilateral trade.
The signing ceremony — a centerpiece of Key’s visit to Seoul — comes four months after the two countries announced they had struck a free trade agreement to boost bilateral trade and economic cooperation.
Park described the formal signing of the free trade agreement as a milestone in bilateral relations.
Park said that the signing of the free trade deal will further strengthen mutual confidence and expand the width and depth of cooperation.
“The signing of the FTA is significant in that it is expected to expand bilateral trade and investment,” Park said in a joint news conference with Key after their summit.
Key also said that the signing of the deal opened a new chapter in the countries’ bilateral relationship and expressed hope that companies of the two countries can enjoy the benefits of the deal.
“The free trade agreement will deliver real economic benefits to both our countries, will make it easier for Koreans and Kiwis to do business with each other,” Key said.
Under the agreement, South Korea will remove tariffs on 96.4 percent of all products from New Zealand within 15 years of the deal taking effect. By comparison, New Zealand will eliminate tariffs on all South Korean goods within seven years of the deal taking effect.
The two sides agreed to exclude rice, a key staple food for Koreans, and other sensitive agricultural produce, including apples and garlic, from the deal.
Park said she and Key agreed to make efforts for a quick ratification of the deal and its implementation.
The deal is subject to parliamentary ratification in both capitals before it can take effect.
New Zealand is South Korea’s 40th-largest trading partner.
Bilateral trade between the countries totaled US$3.2 billion last year, up from $2.8 billion in 2013.
The deal brought to 13 the number of free trade agreements that South Korea has signed in recent years to boost exports, which account for about half of its gross domestic product.
Key countries with which South Korea enforces free trade agreements include the United States and the European Union.
Also Monday, Park said South Korea and New Zealand agreed to closely cooperate with the international community to ensure North Korea abandons its nuclear weapons program.
Park also said the two countries reached a consensus to make joint efforts to help improve dismal human rights record of North Korea.
Key said in the news conference that his country will closely cooperate with South Korea when it comes to North Korea, though he did not elaborate.
Park also said South Korea wants to cooperate with New Zealand in case Seoul decides to join a U.S.-led regional free trade agreement, known as the Trans-Pacific Partnership.
Key told Park that New Zealand will keep South Korea informed on the progress of TPP negotiations.
Once signed, the TPP is expected to create one of the world’s largest economic blocs as the negotiations currently involve 11 other countries: Australia, Canada, Japan, Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. (Yonhap)
