Key plugs free-trade deal with Seoul
Stuff.co.nz
Key plugs free-trade deal with Seoul
By Andrea Vance
27 March 2012
Time is running out for New Zealand to secure a quality free-trade agreement with Korea, Prime Minister John Key has admitted.
Mr Key has used his visit to Seoul for the Nuclear Security Summit to up the ante on slugglish progress on the deal.
After a meeting with President Lee Myung-bak on Sunday, Mr Key used a breakfast speech to petition Korean importers and exporters.
National elections next month and the expiration of Lee’s term in December means there is only a small chance to get the deal over the line.
"There is a window of opportunity after the national elections and before the president leaves office, where in theory it would be technically possible to complete an FTA," Mr Key said.
Because the two nations are celebrating five decades of diplomatic ties, called the 50th Year of Friendship, "there is some great symbolism about it", he said.
But he added: "One shouldn’t underestimate the challenges."
With that in mind, Mr Key last night also met ruling party Saenuri leader Park Geun-hye, who is widely expected to succeed Mr Lee. She has previously visited New Zealand and Mr Key wants to determine if she is in favour of a trade deal.
Two-way trade is worth up to $3 billion a year, but crippling tariffs could see New Zealand firms withdraw. Mr Key says Fonterra and Zespri are "clinging on" in the hope an agreement can be struck.
"Some markets we want to see an FTA because we see huge potential opportunities but they are a long way into the future – I’d put Russia into that category," Mr Key said. "That’s not the case with Korea, it’s a big market which could be a hell of a lot bigger. Without one, it could be significantly smaller.
"Also they are negotiating with other people – the Turkish and the Australians and others. So we can’t afford to be left behind."
But the squeeze on time won’t see Mr Key settle for diluted terms.
