People exchange is key for Korea-NZ FTA

New Zealand Ambassador to Korea Clare Fearnley, center, celebrates the first year of the New Zealand-Korea free trade agreement with officials from the New Zealand Embassy and New Zealand Chamber of Commerce at the ambassador’s residence in Seoul on Dec. 20. / Courtesy of the New Zealand Embassy

By Rachel Lee

As much as bilateral exports have gone up significantly under the New Zealand-Korea trade deal, which had its first anniversary on Dec. 20, it particularly has shown great potential for people-to-people contact, a top New Zealand envoy says.

“I was pleased to see the people-to-people trade element of the free trade agreement (FTA) doing well,” New Zealand Ambassador to Korea Clare Fearnley told The Korea Times.

The agreement was signed in March 2015 and came into force on Dec. 20, 2015.

As an example, the Working Holiday Scheme has increased to 3,000 annually, allowing young Koreans to stay in New Zealand for up to a year. Before the FTA, 1,800 places were on offer.

Other successful examples are in agriculture through several agricultural, forestry and fisheries cooperation projects aimed at rural communities, the diplomat said.

Each year, New Zealand offers 150 new short-term English-language training places for young Koreans from rural communities and allows 50 special primary sector training visas for Koreans to study and do work experience in agriculture. In addition, the deal has established 200 places for skilled Korean workers seeking temporary employment in areas where New Zealand has a need for their skills.

Overall, Fearnley believes the “catch-up” agreement has worked well for both countries.

“New Zealand’s exports to Korea are doing quite well, particularly in the food and beverage side where we have seen growth of 16 percent in the first nine months,” she said.

Wellington’s exports of dairy products increased 12 percent, fruit 24 percent, seafood 26 percent, deer velvet 81 percent, meat extracts 62 percent and wine 28 percent.

During the period, Seoul’s exports went up by 18 percent, with strong performances in passenger cars (up 8 percent), electrical equipment (up 76 percent) and railway coaches (up 17 percent).

Korea is New Zealand’s sixth-largest trading partner.

The ambassador also mentioned proud achievements the two sides have made in film production since the agreement. New Zealand boasts global international productions including “Avatar” and “Lord of the Rings.”

“One of the areas I feel positive about is around film and television cooperation,” she said.

“Just last month, a deal was signed between Korean and New Zealand companies around an animated TV series that will be done jointly. And there is quite a lot of exploration in film co-production. There is a joint film co-production that is currently under preparation around the New Zealand-Korean story.”

Following two tariff cuts, there will be a third round on Jan. 1. According to the New Zealand Chamber of Commerce in Korea, about 98 percent of tariffs on New Zealand’s exports to Korea will be eliminated.

From Jan. 1, the list of products that can be imported duty free to Korea will expand to include products such as frozen fish fillets, prepared or preserved frozen potatoes, several food preparation products (with a dairy base), asparagus, methanol, and skin care cosmetics, according to the embassy. Some food preparation products (with a dairy base) with tariffs of 8 percent become duty free from 2017 and skin care cosmetics with a 6.5 percent tariff rate will be free from 2017.

Key tariffs to be removed over time include the duty on kiwifruit (45 percent), butter (89 percent), beef (40 percent) and up to 11 percent on most processed wood products.

Looking back on the past year, Fearnley said she has immensely enjoyed Seoul — its culture, cuisine and performing arts — especially pansori, the Korean genre of musical storytelling performance.

“Korean foods are very sophisticated and balanced,” she said. “It’s a real delight to find more about Korean foods. Korean food has a foothold in New Zealand, but it is starting to expand. And I think we need more Korean restaurants in New Zealand as well as Korean performing arts like pansori.”

Fearnley, who took up office in Seoul in January this year, has built her diplomatic career in the Asia-Pacific region over a considerable time — she was North Asia and trade director-general in 2014, and Asia-Pacific regional director-general and senior official for EAS/ARF/APE at the New Zealand Ministry of Foreign Affairs between 2011 and 2014.

She was also New Zealand representative and director of the New Zealand Commerce and Industry Office in Taipei between 2004 and 2007.

To mark the FTA’s first anniversary and existing firm bilateral relations between the two countries, the New Zealand Embassy and New Zealand Chamber of Commerce organized a seminar and networking event at the Four Seasons Hotel Seoul on Nov. 17.

More than 150 dignitaries from government and the local business community attended.