Zespri has congratulated Prime Minister John Key, and the government on progressing free trade negotiations with Korea, during meetings with the Korean Prime Minister, Chung Un-chan, and President Lee Myung-Bak, in Seoul earlier this month.
Korea is New Zealand's seventh-largest trading partner and one of Zespri's "Big 6" markets.
A free trade
agreement could be worth almost $34 million to New Zealand kiwifruit growers - about $12,000 per grower. Last year Zespri exported almost 6.5 million trays of Zespri kiwifruit to Korea, worth about $112 million to the industry.
Zespri board chairman, John Loughlin, who travelled with the Prime Minister's delegation in Korea, said Korea's current tariff on New Zealand kiwifruit is the highest in the world at 45 per cent.
"The challenge we have in Korea is that our main competitor, Chile, already has a free trade agreement. Zespri pays a 45 per cent tariff. Chile pays a 16.5 per cent tariff, which declines at four per cent a year until it reaches zero in 2014.
"Zespri has a superior quality product, and superior marketing and service support. A free trade agreement with Korea will allow us to compete on a level playing field, and win the market based on our premium quality fruit," Mr Loughlin said.
A recent economic outlook released by the Korean Ministry of Strategy and Finance predicts the Korean economy will grow by 5.8 per cent in 2010 and about 5 per cent in 2011, presenting exciting growth opportunities for New Zealand businesses.
