By Jane Han
Staff Reporter
Korea will see a much easier free trade negotiation with New Zealand compared to the deals it has ongoing with the U.S. and the European Union, says the head of the New Zealand of Chamber of Commerce in Korea, citing the absence of possible conflict over sensitive issues such as the auto market.
``The pending accords currently in limbo are mainly bogged down because of the automobiles industry,'' Les Edwards, chairman of the business lobby group also known as the ``Kiwi Chamber,'' said in a Korea Times interview Wednesday, a day after President Lee Myung-bak and New Zealand Prime Minister John Key officially agreed to open bilateral free trade negotiations at a summit.
He said the Korea-New Zealand free trade agreement (FTA) is a snug fit because the two economies are complimentary to each other, with few key industries that clash.
The KORUS FTA and Korea-EU FTA have hit a roadblock over disagreements regarding parts of the auto provisions.
``We have abundant natural resources, you don't. We're not a strong manufacturing country, you are,'' said Edwards, who heads the chamber comprised of 70 members, including kiwi marketer Zespri and dairy firm Fonterra.
New Zealand's key inbound items include wood, meat and dairy, while South Korea's main exports to New Zealand include electronics, cars and petroleum. Two-way trade totaled $1.9 billion in 2007.
Although possibilities of a bilateral trade agreement has been floated since years ago, the deal has been seen less significant to Seoul because New Zealand isn't one of its top export markets.
Edwards, however, downplayed this factor, stressing that all FTAs are important, especially for an export-driven economy like Korea.
``Countries like us cannot afford to be protectionist because both of us resort to exports,'' he said, adding an FTA also does more than open doors for easier trade.
Building on President Lee's remarks regarding the agricultural sector, Edwards said that South Korean farmers can learn a great deal from New Zealand's agricultural reforms.
``Our farmers got a wake up call 20 years ago, but now, they're extremely competitive in the global market,'' he said. ``Even if the procedure is tough, at the end of the day, Korea needs to open up.''
The chairman, who is simultaneously serving as the managing partner of Lee DDB, an advertising firm, said he expects the bilateral pact to be signed and ratified by early 2010 at the latest.