Free trade benefits kiwifruit industry

Tauranga MP Simon Bridges and Bay of Plenty MP Todd Muller are welcoming the announcement on successful conclusions of negotiations between New Zealand and Korea towards a Free Trade Agreement.

Kiwifruit. Photo: file.

'There are some very positive outcomes for agricultural exports, and especially for kiwifruit growers,” says Simon. 'New Zealand is the largest supplier of kiwifruit to Korea.”

The 45 per cent tariff on kiwifruit will be eliminated five years from the agreement coming into force.

Simon says in the year ending June 2014, NZ exported more than $44 million worth of kiwifruit to Korea.

'Based on this trade, removing the tariff equals a $20 million benefit to the industry and is the equivalent of putting $8,500 in the pockets of the average kiwifruit grower every year.

'The kiwifruit industry has bounced back strongly since Psa, thanks to the hard work of growers and with the help of $25 million from the Government.”

He says the New Zealand-Korea Free Trade Agreement will be a real boost to an industry that is now focused on the future and getting on with the job.

'Supporting our exporters is crucial to creating new jobs and boosting incomes for New Zealanders.”

Bay of Plenty MP Todd Muller is also welcoming the agreement, saying it's testament to a great negotiating outcome by Trade Minister Tim Groser and the Ministry of Foreign Affairs Trade.

'[It's a] tremendous boost for our recovering kiwifruit sector. Already reporting great sakes growth with the new G3, and over 6000 more jobs by 2020, this FTA eliminating millions of tariff and duty obligations will be a further shot in the arm.

'Kiwifruit is storming back and this FTA will just make them stronger.”

The Trade Minister welcomed the announcement on the successful conclusion of negotiations with the Republic of Korea on a FTA today.

'Korea is one of New Zealand's biggest and most important trading partners,” says Tim.

'The FTA will deliver real economic benefits for both our countries. It will create more opportunities for our business and will deliver cheaper products to consumers. It's a win-win agreement.

'There are positive outcomes for agricultural exports, as well as the forestry sector, the fisheries industry and exporters of all industrialgoods. Government procurement, trade in services and investment are all subject to high quality commitments.”

On entry into force, tariffs will be eliminated on 48 per cent of current New Zealand exports. Tariff cuts under this FTA will create an estimated duty saving of $65 million in the first year alone. Duties on New Zealand's current exports will largely be eliminated within 15 years of entry into force.

Korea is New Zealand's sixth largest export destination for goods and services and eighth largest import source of goods and services, with total two-way trade of $4 billion in the year ending June 2014.

Improving access to international markets through FTAs is a key component of the Government's Business Growth Agenda. Supporting our exporters is crucial to creating new jobs and boosting incomes for New Zealanders.

Further information is available here.

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