South Korea-New Zealand FTA Remains Elusive

The eighth week-long round of talks, held in Seoul, on the proposed free trade agreement between New Zealand and South Korea ended on August 8 with no significant breakthrough, as the countries remained divided over South Korean agricultural market access.

Negotiations towards an FTA with South Korea were announced by New Zealand's Prime Minister, John Key, and former Korean President Lee Myung-bak in 2009. They confirmed their commitment to conclude negotiations as soon as possible in 2012, but subsequent meetings have foundered on the elimination of tariffs on agricultural products, which remains a sticking point, particularly for South Korea.

New Zealand had said previously that it was working hard to address South Korean perceptions about the impact of the proposed FTA on its domestic agricultural sector. For example, New Zealand has said that it does not compete with South Korea producers in the domestic market for their most sensitive products.

However, as was disclosed by the South Korean Ministry of Trade, Industry, and Energy, the countries were still unable to bridge the wide gap in tariff offers over the South Korean agriculture and fishery markets during the latest round of talks. It was further confirmed that the conclusion of the FTA negotiations will only be possible once it is known that the issues over ultra-sensitive products can been resolved. As yet, a date has not been set for the next round.

Source: Tax News