8 Jan 2017

Trade with Korea rises as FTA rolls out

4:40 pm on 8 January 2017

It will now be cheaper for local businesses to export to South Korea as the latest round of tariff reductions under the New Zealand-Korea Free Trade Agreement kicks in.

Seoul cityscape at dusk

Seoul cityscape at dusk Photo: Supplied

Two-thirds of New Zealand's exports to South Korea since the beginning of the year have been duty free, up from just under half last year.

The free trade agreement has been in a place for a year.

Trade Minister Todd McClay said businesses could now compete favourably in the Korean market.

He said Korea was New Zealand's sixth-biggest export market, worth $1.5 billion at the end of September.

Mr McClay said there has been strong growth in exports to Korea since the agreement came into force, particularly food and beverages which increased by more than 16 percent.