Tax-news | 13 January 2017
New Zealand-S Korea FTA enters second phase
by Mary Swire
Cross-border tariffs between New Zealand and Korea were scaled back further on January 1, 2017, with the second installment of tax cuts under their free trade agreement.
Under the FTA’s terms, 66.4 percent of New Zealand’s exports to South Korea are now duty free, compared with 46.2 percent when the agreement was implemented a year ago.
After 15 years of the agreement’s entry into force, tariffs will be eliminated on around 98 percent of exports between the countries.
New Zealand said that Korea is its sixth-largest export destination, accounting for NZD4bn (USD2.8bn) in total trade in 2015.