Bay of Plenty kiwifruit growers will benefit from the New Zealand–Korean Free Trade Agreement, thanks to reduced tariffs imposed on their export fruit.

Their biggest competitor, Chile, currently pays no tariffs on kiwifruit it sells into Korea, while New Zealand fruit faces a 45 per cent tariff.

Bay of Plenty MP Todd Muller has welcomed the New Zealand–Korean Free Trade Agreement. Photo: File.

But under the agreement signed between the New Zealand and Korean governments, that 45 per cent tariff on exports from this country will be removed over five years.

Bay of Plenty MP, Todd Muller, is among those welcoming the agreement, which he says has some major benefits for the region.

Kiwifruit businesses such as Zespri, Bay Growers and other Bay exporters will see 45 per cent of tariffs removed effectively five years after the agreement comes into force and wine tariffs of 15 per cent will be removed immediately.

The agreement will progressively remove tariffs on 98 percent of New Zealand's exports to Korea, saving an estimated $65 million in duties in the first year alone.

'It is fantastic to see the tariffs coming off Zespri kiwifruit,” says Todd. 'This will create a boom for local growers in the Bay.

'Improving local businesses' access to international markets through free trade agreements 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.

'The Bay's horticultural sector is going from strength to strength, providing the region with more jobs and higher incomes.

'This agreement secures the long-term future of Bay exporters to Korea.

'I strongly support free trade agreements, such as this one with Korea, for the benefit of getting Bay growers better access into Asian markets.”

The Agreement will also make possible a new level of cooperation in areas like agriculture, the creative economy, the environment and education, and spur greater investment.

The FTA will offer improved protections for New Zealand investors in the Korean market, and reinforce the attractiveness of New Zealand as a stable investment destination.

Horticulture New Zealand president Julian Raine says the playing field is not level when it comes to competing in the international market place, so agreements such as this with Korea are welcome.

'New Zealand growers' produce is highly sort after in Korea and it, along with the other major Asian markets, are attractive for our producers,” says Julian.