28 Jul 2013

NZ PM confident of Korean trade pact

12:48 pm on 28 July 2013

New Zealand Prime Minister John Key says he expects to secure a free trade agreement with South Korea.

Mr Key is in South Korea to commemorate the 60th anniversary of the Korean War. He held talks with President Park Geun-hye on Friday.

AAP reports talks with South Korea have stalled in recent years, with the agriculture sector opposed to a deal.

The key to securing a deal is pushing the benefit of "technology transfer" for South Korea's farming sector, Mr Key told the Q+A programme on Television New Zealand on Sunday.

"The way to sell this is to get them to understand that this is complementary," he said. "We're not here to put them out of business."

Mr Key said an FTA had become urgent, with New Zealand companies in the market under pressure from the United States and Europe, who have existing trade agreements.

South Korea is New Zealand's fifth largest market, he said.

"Our companies are clinging on at the moment, as every day goes by they are at a bigger and bigger disadvantage to United States and European companies," Mr Key said.

"That was the point we made with the president, we were really polite about it but actually quite direct.

"In the end our companies could give up faith and hope in this market if they don't get an FTA."