A free trade deal with Korea would hopefully see the country slash its "horrifically" high tariff rates for New Zealand exports, Prime Minister Helen Clark says.Korea is sixth largest export market for New Zealand with exports to Korea being worth $1.33 billion in 2007. The report says that the an average agriculture tariff rate is 52 percent. Removal of tariffs that high must have a huge effect on Korean farmers. If they really are as inefficient as that sized tariff would suggest, they will not be able to compete with New Zealand farmers. Depending on how politically powerful farmers in Korea are this could make a trade deal difficult to negotiate.
The report also notes that
Her visit follows hot on the heels of a successful trip to Japan, where Miss Clark this week won agreement to undertake a study on the benefits of a free trade deal.An expansion of free trade deals is a step in the right direction.
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