Benefits to New Zealand trade
KNZFTA is a high quality agreement covering goods and services trade between New Zealand and Korea.
A core objective of New Zealand trade policy is to broaden and deepen the opportunities available to exporters by removing and reducing barriers to trade, and establishing frameworks through which trade and investment linkages can evolve and expand.
Concluding agreements with a group of key trading partners to remove trade barriers on a reciprocal basis is one way of achieving this objective.
Under KNZFTA, New Zealand exporters gained improved access to Korea, which now has a population of over 50 million people and is our fifth-largest goods export market. It also achieved significant outcomes across a range of sectors, allowing New Zealand exporters to maintain and grow their presence in the Korean market.
At the time of its negotiation, key highlights included
- Tariffs would be eliminated on around 98% of New Zealand’s current exports to Korea. This would happen in stages over 15 years from entry into force.
- Following further reductions in tariffs on 1 January 2021, 67.4% of New Zealand’s exports would enter Korea duty and quota free. This percentage will rise to 79.3% by 1 January 2026.
- Better access to high quality Korean goods for New Zealand businesses and consumers.
- Easier goods trading through agreed rules on: customs, rules of origin, sanitary and phytosanitary measures, standards, technical regulations.
- Improved access to Korean markets for New Zealand service providers, including streamlined and transparent procedures for travel and visas.
- Open, competitive and non-discriminatory access to government contracting opportunities.
- Free and open flows of investment between New Zealand and Korea, and measures to safeguard investors interests.
- Dedicated chapters on environment and labour that provide for more effective discussion and cooperation.
- Both countries agreed to maintain competition laws against anti-competitive business conduct such as abuse of market power and anti-competitive mergers.
- Increased cooperation to create new opportunities in areas of mutual interest such as in agriculture, education, trade facilitation, science and technology, and film and television.
- A clear and detailed process to settle disputes related to KNZFTA.
Key facts on New Zealand-Korea Trade
New Zealand Exports to Korea
New Zealand exports to Korea a total of $2.8 billion, comprising $2.38 billion in goods, and $417 million in services (Figures for year ending December 2023).
New Zealand’s major goods exports include:
- Dairy (milk powder)
- Aluminium
- Wood
- Fruit (mainly kiwifruit)
- Meat and edible offal
New Zealand’s major services exports include:
- Tourism
- Education
New Zealand imports from Korea
New Zealand imports from Korea are $5.96 billion, comprising $5.77 billion in goods and $193 million in services.
New Zealand’s major goods imports include:
- Mineral fuels and oils
- Vehicles
- Electrical machinery and equipment
- Mechanical machinery
New Zealand’s major services imports include:
- Tourism
- Telecommunications
- Business travel
Trade figures correct as at December 2023: Source Statistics New Zealand Trade Dashboard(external link)
Want to know more?
For more information about KNZFTA, including benefits and key outcomes see the New Zealand-Korea Free Trade Agreement Guide (dating from when KNZFTA entered into force) and a strong>KNZFTA Review Report (which provides data up to 2019), below.