Trade Minister Tim Groser has welcomed today’s announcement that the New Zealand-Korea Free Trade Agreement would enter into force on 20 December 2015.

“I’m very pleased to see this high quality agreement enter into force,” Mr Groser says.

“This FTA will help New Zealand exporters grow their business in the world’s thirteenth largest economy.

“Under this FTA, approximately 98 percent of tariffs on New Zealand’s current exports to Korea will be progressively eliminated.

“Approximately $229 million a year is paid in duties on New Zealand exports. Duty savings in the first year alone will be in the vicinity of $65 million.

“New Zealand exporters will benefit from two rounds of tariff cuts in quick succession – the first on entry-into-force of the agreement on 20 December, and a second round of cuts on 1 January 2016.

“The lack of a formal FTA with Korea has restricted trade growth and put New Zealand at a distinct disadvantage relative to Korea’s current FTA partners. This agreement will rectify this imbalance by levelling the playing field for New Zealand businesses in the Korean market.

“This FTA will deliver real economic benefits for both our countries. It also lays the groundwork for an even closer relationship between New Zealand and Korea in the future,” says Minister Groser.