APEC NEWS RELEASE: Issued by The APEC Business Advisory Council (ABAC) Ha Long, 29 July 2022 – Asia-Pacific business leaders in the APEC Business...
Key visit underlines big opportunities in Korea Dominion Post – 5 July 2010 By Stephen Jacobi

John Key’s visit to Seoul this week takes him to a country which is rebounding quickly and confidently from the economic malaise of the last year: Korea’s economy is back into growth mode with 4 percent growth expected this year and 5 percent next year. Emerging from the rubble of the disastrous conflict that engulfed the peninsula 60 years ago this year, the Korean people have built an economy of remarkable depth and resilience. Korea is already New Zealand’s seventh largest trading partner and the economic relationship is primed for further development, building on Korea’s strengths in innovation, high tech manufacturing and its increasing focus on green technologies. As leader of the G20 group, Korea is also playing an increasing global leadership role which befits the size of its economy, the fourth largest in Asia.
The Prime Minister’s first visit to Korea is focused on promoting the relationship across the board. But when he sits down with President Lee Myung Bak today (Monday 5 July) both leaders will also have some hard talking to do about the free trade negotiation which they started just over a year ago. After four rounds of negotiations some good progress has been made but the negotiation is running into some predictable problems around agriculture. New Zealand which supplies less than 3 percent of Korea’s food imports can hardly be regarded as a significant threat to Korea’s farmers. We do not produce rice and do not export fresh milk. Our growing seasons for horticulture are complimentary. Moreover Korea has already concluded agreements with Chile, the United States and now the European Union which expand market access from those countries in kiwifruit, beef and dairy products and risk putting our products at a competitive disadvantage in the Korean market. New Zealanders on the other hand are at liberty to buy increasing numbers of Korean-made cars and consumer goods. Today Hyundai, Samsung and LG are as well known here as the big Japanese, American or European manufacturing brands and that is as it should be.
But this FTA negotiation is about more than traditional exports and imports. The economic recovery has resumed the process of regional economic integration which was temporarily stalled by the financial crisis. New models of business co-operation are emerging with a greater focus on services and investment. New Zealand and Korean companies are looking to get closer to consumers and to find new ways of partnering with local companies. Both governments want to use the FTA not just to reduce market access barriers but to make it easier to do business, reduce costs and drive new investment in both directions. Both will have an eye on the bigger picture of region-wide trade liberalisation. New Zealand sees the nascent Trans Pacific Partnership (TPP) as a model for a future Free Trade Area of the Asia Pacific. Korea is anxious to conclude its giant FTA with the United States – KORUS – which has been blocked in the Congress but which Presidents Obama and Lee have agreed to look at again.
These developments are the background which the Prime Minister’s visit takes place. On Tuesday 6 July he will address the 2nd Korea NZ Business Roundtable which brings together an influential group of sixty Korean and New Zealand business leaders. Organised by the NZ International Business Forum (NZIBF) and the Korean International Trade Association (KITA) the Roundtable last met in June 2009 at the time the first round of FTA negotiations took place. Under the theme “Innovation, growth, opportunity” this year’s Roundtable will be looking at how the economic recovery is driving changes in business practices. It will also consider several case studies of successful new business co-operation between New Zealand and Korea in the area of information technology, health sciences and clean technology. These sectors are the new frontier of business co-operation between the two countries.
The Roundtable aims to motivate business leaders in both countries to become advocates of the relationship. A study showed that an FTA could produce accumulated gains to real GDP over 2007-2030 of US$5.9 billion and US$4.5 billion for Korea and New Zealand respectively. A relationship once founded on security and development has been transformed over the last sixty years into an innovative partnership based on the fundamental complementarity of the two economies.
[1] Stephen Jacobi is Executive Director of the NZ International Business Forum (www.nzibf.co.nz)
REGISTER WITH TRADE WORKS
Register to stay up to date with latest news, as well as saving and discussing articles you’re interested in.
Latest News
Asia-Pacific Business Leaders to APEC Leaders: Speed up economic recovery and regain growth momentum
APEC NEWS RELEASE: Issued by The APEC Business Advisory Council (ABAC) Ha Long, 29 July 2022 – Asia-Pacific business leaders in the APEC Business Advisory Council (ABAC), meeting this week in Ha Long, Viet Nam, expressed deep concern about the unprecedented crises...
TradeWindow: Digital trade provides hope through challenging times
It won’t come as a surprise to many people to hear that we remain in a very challenging situation when it comes to global business. Our exporters are operating in an environment that is difficult to navigate due to continuing uncertainties – the seemingly endless...
TRADE AND CLIMATE POLICIES NEED TO WORK TOGETHER – BUSINESS FORUM
A new report, commissioned by the NZ International Business Forum (NZIBF) and prepared by Adrian Macey, former Climate Change Ambassador and World Trade Organization (WTO) Lead Negotiator, shows that trade policy and actions to address climate change can be...
Trade and Climate Change: State of Play
TRADE AND CLIMATE CHANGE: STATE OF PLAY. A discussion paper prepared for the NZIBF by Adrian Macey, June 2022. Download here.
THE NZ/EU FTA IS LIKE THE CURATE’S EGG
In which we like the good parts of the NZ EU FTA…. Who remembers the curate’s egg? It’s when the nervous Curate, asked by the Bishop, if everything is ok with his boiled egg, replies “It’s good in parts, my Lord”. So too the recently concluded NZ/EU FTA, which has...
ADDRESS TO THE FONTERRA ALUMNI GOVERNANCE DEVELOPMENT WORKSHOP
ADDRESS TO THE FONTERRA ALUMNI GOVERNANCE DEVELOPMENT WORKSHOP AUCKLAND, 29 JUNE 2022 STEPHEN JACOBI EXECUTIVE DIRECTOR NZ INTERNATIONAL BUSINESS FORUM THE GLOBAL GOVERNANCE CHALLENGE Thanks to my friend Janine Smith for inviting me to speak to you today....
NZ EU FTA – A MIXED BAG, SAYS BUSINESS FORUM
Reacting to the overnight conclusion of negotiations for a free trade agreement between New Zealand and the European Union, the NZ International Business Forum (NZIBF), which brings together a cross section of major exporters, said the outcome was mixed in terms of...
NZ EU FTA COMING DOWN TO THE WIRE – HOLD THE LINE, SAYS BUSINESS FORUM
As negotiations accelerate to conclude an ambitious free trade agreement between New Zealand and the European Union, the NZ International Business Forum (NZIBF), representing a cross section of major exporters, urges the Government and its negotiators to hold out for...
WTO BACK IN BUSINESS – INTERNATIONAL BUSINESS FORUM
Media release, 19 June 2022 The NZ International Business Forum (NZIBF) welcomes the outcome of the World Trade Organization (WTO) 12th Ministerial Council meeting in Geneva and congratulates Trade Minister O’Connor and officials. “It’s great to see the WTO back in...
Address to the 50th One Stop Update for the Accountant in Business
ADDRESS TO THE 50TH ONE STOP UPDATE FOR THE ACCOUNTANT IN BUSINESS CHRISTCHURCH, WELLINGTON, AUCKLAND, MAY 2022 STEPHEN JACOBI EXECUTIVE DIRECTOR NZ INTERNATIONAL BUSINESS FORUM ONE STOP GLOBAL ECONOMIC UPDATE Thanks to Brightstar for once again inviting me to...
Remarks by Rachel Taulelei to APEC Ministers Responsible for Trade, 21 May 2022
ABAC NEW ZEALAND REMARKS TO ABAC-MINISTERS RESPONSIBLE FOR TRADE DIALOGUE 21 MAY 2022 RACHEL TAULELEI ABAC NZ Chair, Ministers The Free Trade Area of the Asia Pacific (FTAAP) remains the preeminent economic priority for the Asia-Pacific business community. It...
Deepening ECONOMIC INTEGRATION and EQUIPPING BUSINESS FOR DYNAMIC, INCLUSIVE and SUSTAINABLE GROWTH ARE KEY to ECONOMIC RECOVERY, say business leaders
Vancouver, 28 April 2022 –Asia-Pacific business leaders in the APEC Business Advisory Council (ABAC), meeting this week in Vancouver, affirmed their determination to continue to work closely together to respond to the challenge of sustaining the region’s growth...
FROM APEC AND CPTPP TO IPEF – SMALL STEP OR GIANT LEAP?
The US idea of an Indo Pacific Framework (IPEF) continues to gain traction but is not without complication. Aotearoa-New Zealand is a great joiner - from the very beginning of the United Nations to the important economic institutions like the WTO, APEC, CPTPP and...
Remarks to Foreign Affairs, Defence and Trade Committee
NZ INTERNATIONAL BUSINESS FORUM REMARKS TO THE FOREIGN AFFAIRS, DEFENCE AND TRADE COMMITTEE INTERNATIONAL TREATY EXAMINATION OF THE NZ/UK FREE TRADE AGREEMENT 17 MARCH 2022 STEPHEN JACOBI EXECUTIVE DIRECTOR Madam Chair, Members of the Committee Thank you for the...
Submission to the Parliamentary Foreign Affairs, Defence and Trade Committee
INTERNATIONAL TREATY EXAMINATION OF THENEW ZEALAND UNITED KINGDOM FREE TRADE AGREEMENT MARCH 2022 Introduction and Summary 1. This submission is made on behalf of the New Zealand International Business Forum (NZIBF) whose members are listed at Annex A 1 . NZIBF is a...