Korean tariff lift pleases DCA

The Dairy Companies Association of New Zealand (DCANZ) has welcomed the successful conclusion of Free Trade Agreement (FTA) negotiations between New Zealand and Korea.

The agreement will result in elimination of tariffs on the majority of dairy tariff lines over reasonable periods.

For cheese, there will be a transitional quota of 7000 tonnes growing at 3 per cent a year until elimination.

For butter, there will be an 800 tonne quota increasing at 3 per cent a year until elimination.

The agreement also includes a permanent quota on milk powder which begins at 1500 tonnes and then increases at 3 per cent an annum until year 10.

These results compare favourably with the results of the previous FTAs that Korea has concluded with the European Union, United States and Australia.

DCANZ chairman Malcolm Bailey said the agreement was a good outcome given difficult negotiations.

‘‘ With other larger countries having concluded FTAs already with Korea, it was undoubtedly a hard road for Minister Groser and his negotiators to get these outcomes,’’ he said.

‘‘They have done a fine job in those circumstances and the dairy industry deeply appreciates their efforts.’’

‘‘New Zealand’s growing suite of trade and economic co-operation agreements is testament to the commendable bipartisan approach successive New Zealand Governments have taken to trade liberalisation.

‘‘This approach continues to be to the benefit of New Zealand as a whole, as well as the dairy sector,’’ Bailey said.